CreditMantri Finserve Private Limited
Door No.3, Block B, No. 147, 2nd Floor, Workeasy Space Solutions, RK Swamy Centre, Hansa Building, Pathari Road,Thousand Lights, Chennai, Tamil Nadu600006
Have any queries? Click here for more details
All written queries will be responded within 1 working day.
We'd love to help you through every step along the way.
Is your Credit Score >750?
List of recurring deposit rates across all banks in India
Recurring Deposit (RD) is one of the most popular forms of saving schemes in India along with a fixed deposit. It allows you to deposit a fixed amount on a periodic basis with your bank and earn an interest on the deposited amount. The interest return depends on the period and deposit amount you have chosen on the recurring deposit scheme.
The advantage of recurring deposit is that you can enjoy the same higher interest rate as a fixed deposit as compared to a regular savings account. If you get the same interest as a fixed deposit for a recurring deposit, then what is the difference between both the schemes? A recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the fixed deposit account. For example, if you do not have Rs. 20,000 in cash to invest in a fixed deposit, you can put away a small amount, such as Rs. 1000 every month into the recurring deposit and enjoy a higher interest rate than your regular savings bank account.
A recurring deposit is a way to encourage saving among individuals who may not be able to spare a large sum to open a fixed deposit account but prefer to invest smaller amounts on an ongoing periodic basis.
You can also deposit the money in recurring deposit with a standing order with your bank so that the deposit is automatic. The bank will deduct the amount you have specified and credit it to your recurring deposit account. This is a form of automatic saving and ensures that you set aside a fixed amount on a regular basis regardless of your other expenses. On maturity of the recurring deposit, you are credited with the entire amount, which includes the principal plus interest.
Following are the salient features of opening a recurring deposit account
A recurring deposit offers the same or higher interest rates as a fixed deposit. Some banks even offer marginally higher interest rates on recurring deposit compared to a fixed deposit for the same tenure. It is important to keep in mind that the interest rates on recurring deposits differ with each bank. Also, the rates offered on recurring deposits may change at any time.
However, once you open a recurring deposit account, the rate remains the same for the entire period of the deposit. If you have opted for a recurring deposit with 36 months tenure, you will get the same interest rate over the whole 3-year period. In general, the recurring deposit interest rates typically range between 6%-9%. This is a general range and individual banks may offer a higher or lower interest rate depending on the amount that you invest and the period that you have invested for.
While the interest rate is the same for the period of the recurring deposit, compounding is done on a quarterly basis.
Senior citizens can enjoy a higher interest rate on recurring deposits. This could be 0.25% -0.50% higher than the regular recurring deposit rate. If you are above 60 years of age and wish to open a recurring deposit, check with your bank about the preferential rates offered.
Before you open a recurring deposit account, you need to research the interest rates offered by various banks for the different tenures. In general, most banks offer interest rates between 6-9% per annum, with variations depending on the amount and tenure. These rates can change at any time, so it is important to research for the latest rates on the bank websites when you plan to open a recurring deposit account.
A recurring deposit calculator is a handy tool that helps you calculate how much interest you will earn on your deposit and to determine what the maturity amount will be. It can be slightly more complicated to manually calculate interest earned in recurring deposit since the deposit amount keeps increasing periodically with every addition you make. However, it is fairly simple to find online tools that will help you calculate interest.
Many banks offer an online recurring deposit calculator on their website which helps you calculate the amount you will earn as interest based on the fixed amount you deposit periodically.
If you wish to do it on your own, the formula for calculating interest and maturity amount on a recurring deposit is as follows:
M = R [ (1+i)n – 1]
1- (1+i) -1/3
M = Maturity value
R = Monthly instalment
n = Number of quarters
i = Rate of interest/400
Duration of recurring deposit
The minimum period for recurring deposit is generally 6 months, though some banks can have a minimum period of 2 years. It is best to check with each bank on the minimum period for a recurring deposit account. The maximum period for a recurring deposit is 10 years.
Most banks require a minimum amount to open recurring deposit. In addition, the amount that you deposit on a periodic basis might need to be of a minimum value, at least for the first few months. This minimum ongoing deposit amount also varies with each bank, so it is best to check the required amount before opening the recurring deposit.
Many banks will levy a penalty for a missed payment. Some banks may not charge a penalty for missed payments under certain terms and conditions of opening the account. This offers you the flexibility to save only when you can, and at any time you want, instead of having to deposit a fixed amount at a fixed time for the entire tenure of the recurring deposit.
When you save in a fixed deposit or recurring deposit, your money is locked up until the time of maturity. However, sometimes, you might be need cash immediately like for medical expenses or for education expenses. Your recurring deposit might be the only source of ready money from your savings. It is possible to withdraw the entire amount of your recurring deposit. Do keep in mind that there might be a fee of penalty for withdrawing the money. The fee may depend on the original tenure of the deposit. The shorter the original tenure, the lower the penalty will be. So, the penalty for premature withdrawal of a one-year recurring deposit will be less than the penalty for withdrawal from a 3-year recurring deposit.
Many banks do not offer facility of partial withdrawal of funds from recurring deposit. The option is to withdraw the entire amount of the recurring deposit in full. Renewal of recurring deposit depends on the individual policies of the bank.
In some cases, you might need a small amount of money to tide you over your cash shortfall. You might not want to withdraw the entire amount that is in your recurring deposit, only a part of the money. However, banks do not, in general, allow partial withdrawal from the recurring deposit. You will need to close the recurring deposit and withdraw the entire amount.
If you require only some of the funds that are available in your recurring deposit, you can ask the bank about allowing you an overdraft or loan facility, where the balance in your recurring deposit is held as collateral. Your loan amount will be calculated based on the amount you have in your recurring deposit. Banks can offer up to 75-90% of your balance as the loan amount. The interest rate on the loan is usually a little higher than the recurring deposit interest rate.
Any resident Indian can open a recurring deposit account. Each bank will have its own rules on the minimum opening balance. It is also open to Hindu Undivided Families (HUF), trusts and societies, and private and public limited companies.
Some banks also offer recurring deposits to non-resident Indians, (NRIs) but the minimum tenure could be higher.
Some banks also allow minors to have recurring deposit account. This would be under the supervision of a guardian.
When opening the recurring deposit, you will need to provide documentation for ID proof (for instance, PAN card, Voter ID, Driver’s License, Senior Citizen ID, Passport etc.) and address proof (telephone bill, electricity bill, bank statement with cheque etc). You need to check with the bank what ID and address proof documentation is valid and can be submitted.
It is also a good idea to avail of the nomination facility on your recurring deposit, whether it is singly or jointly held.
The recurring deposit will be taxed at source (i.e. subject to TDS). If the interest earned on recurring deposit is more than Rs. 40,000 per annum, it will be subject to 10% TDS.
If the deposit holder does not want tax to be deducted at source, the bank may require them to submit Form 15G / 15H (other than company, firm or co-operative society)/ Exemption Certificate under Section 197 (in case of all holders)/ or any other Tax Exemption Certificate. This form or tax exemption certificate must be submitted every financial year for each recurring deposit held with the bank.
1. What is the minimum tenure on recurring deposit account?
It varies with each bank but generally the minimum tenure is 6 months.
2. Is there a minimum opening balance and minimum deposit amount?
Yes. The minimum opening balance can be as little as Rs. 10- Rs. 600 depending on which bank and where you open the recurring deposit. The minimum deposit amount can also vary but is usually in multiples of Rs. 100.
3. How do I open recurring deposit?
You can open recurring deposit online with some banks. You can call the customer care number and ask for details. You can walk into a branch of the bank you have chosen with the required documents prescribed by the bank.
4. What is the interest rate offered on recurring deposits?
In general, many banks in India offer the same interest rates on recurring deposit as an FD. Senior citizens are eligible for a slightly higher interest rate on recurring deposits.
5. Is there a monthly or quarterly interest pay-out option?
The interest is paid out along with the principal amount at the time of maturity, or when the recurring deposit account is closed.
6. Can I withdraw money from my recurring deposit account?
You can withdraw the entire balance in your recurring deposit and close your account. Most banks will not allow you to make a partial withdrawal.
7. What happens if instalments are not paid?
If more than a minimum number of consecutive payments are not made, many banks will close the recurring deposit account. Some banks offer a more flexible form of recurring deposit on certain terms, whereby you can deposit money any time you like.
Credit Report Analysis,good experiance
Call Experience,Credit Report Analysis,Website/app interface,Usefulness of information,
Product offers,Usefulness of information,Credit Report Analysis,Website/app interface,
Credit Report Analysis,Usefulness of information,
Get loans starting from 11.25% interest rate
Know how to improve credit score
FREE credit analysis for 1 year
Andhra Bank Recurring Deposit Rate
Axis Bank Recurring Deposit Rate
Bandhan Bank Recurring Deposit Rate
Bank Of Baroda Recurring Deposit Rate
Bank Of India Recurring Deposit Rate
Bank Of Maharashtra Recurring Deposit Rate
Canara Bank Recurring Deposit Rate
Central Bank Of India Recurring Deposit Rate
Citibank Recurring Deposit Rate
City Union Bank Recurring Deposit Rate
Corporation Bank Recurring Deposit Rate
DCB Bank Recurring Deposit Rate
Deutsche Bank Recurring Deposit Rate
Dhanlaxmi Bank Recurring Deposit Rate
Federal Bank Recurring Deposit Rate
HDFC Bank Recurring Deposit Rate
ICICI Bank Recurring Deposit Rate
IDBI Bank Recurring Deposit Rate
Indian Bank Recurring Deposit Rate
Indian Overseas Bank Recurring Deposit Rate
IndusInd Bank Recurring Deposit Rate
Jammu Kashmir Bank Recurring Deposit Rate
Karnataka Bank Recurring Deposit Rate
Karur Vysya Bank Recurring Deposit Rate
Kotak Mahindra Bank Recurring Deposit Rate
Lakshmi Vilas Bank Recurring Deposit Rate
Oriental Bank Of Commerce Recurring Deposit Rate
Punjab National Bank Recurring Deposit Rate
Punjab Sind Bank Recurring Deposit Rate
RBL Bank Recurring Deposit Rate
SBI Recurring Deposit Rate
South Indian Bank Recurring Deposit Rate
State Bank Of Travancore Recurring Deposit Rate
SVC Bank Recurring Deposit Rate
Syndicate Bank Recurring Deposit Rate
Tamilnad Mercantile Bank Recurring Deposit Rate
UCO Bank Recurring Deposit Rate
Union Bank Of India Recurring Deposit Rate
Vijaya Bank Recurring Deposit Rate
YES Bank Recurring Deposit Rate
CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.