Top 5 Recurring Deposit Scheme in India
Irrespective of the income you earn every month, you can save a small part for a prosperous future. There are several methods to invest your money safely without affecting your monthly expenses. Recurring Deposit is one the best saving schemes that you can opt for to gradually increase your wealth. While you may be wondering which bank offers the best interest rate on Recurring Deposit, CreditMantri has picked top 5 schemes that you can safely invest in India.
What Is Recurring Deposit Scheme?
Recurring Deposit is a kind of term deposit wherein you invest a fixed amount every month with the bank until a certain period. At the time of maturity, you can get a lump sum with the interest accrued on the total amount you deposited. Both banks and NBFCs facilitate Recurring Deposit scheme for their customers.
Now let us look at some of the best Recurring Deposit schemes in India.
1. Axis Bank
You can invest minimum of INR 500 as recurring deposit per month with no cap on the upper limit. Axis bank facilitate minimum tenure starting with 6 months to 10 years. You can earn up to 300 Axis eDGE reward points on depositing INR 2000 and more. You can get back a hefty sum with the long tenure with the interest rate up to 7.50% and senior citizens can get interest rate of up to 8%.
2. Lakshmi Vilas Bank
The bank allows you to deposit a minimum of INR 100 and no cap on the maximum amount. The tenure ranges between 1 to 10 years where the interest will be paid at the time of maturity. Moreover, you can have an individual deposit, joint deposit and even can have a deposit for minors. The bank also provides loan facility against your recurring deposit. You can get interest up to 7.50% on your recurring deposit.
3. Canara Bank
You can start with a minimum of INR 50 as a recurring deposit with Canara Bank and there is no limit on the maximum amount. The deposit term ranges between 6 months to 10 years as per your convenient. You can also get a loan on 90% of your recurring deposit. The interest rate is compounded quarterly and senior citizens get 0.50% additional interest rate. You can earn interest up to 7.75% on your recurring deposit. The bank charges 1% of the total amount as fee for premature withdrawal.
4. Repco Bank
The bank offers both fixed and flexible recurring deposit. For fixed recurring deposit, the interest is payable at the time of maturity and for flexible recurring deposit, the interest is compounded quarterly and credited to your account. The tenure for both the schemes ranges between 1 to 10 years. You can also get loan on the deposit amount. The bank charges less than 1% of your deposited amount as penalty for premature withdrawal of the scheme. You can get interest up to 7.50% from both the recurring deposit schemes.
5. ICICI Bank
You can deposit a minimum of INR 500 and there is no ceiling on the maximum amount. The loan tenure ranges between 6 months to 120 months. The RD interest rate is compounded quarterly and senior citizens get additional interest on their saving. You can earn interest up to 7.50% on your savings. The bank also provides loan on your deposited amount. You can either apply online or visit a near by branch to start your recurring deposit.