Recurring Deposit account also called RD. RD is a unique plan to Deposit fixed monthly investments for a Fixed Term. Let’s discuss what is a Recurring Deposit account and Features and benefits of RD.
What is a Recurring Deposit account (RD)?
RD stands for Recurring Deposit. RD scheme is popular among middle-class families to earn a decent interest rate.
Recurring Deposit account is primarily available in all banks of India and Post offices as well. RD tenure ranges from 6 months to 10 years, and investors can select any term according to their needs.
RD is a small savings plan every month that allows investors to get decent interest at the end of RD tenure.
Features and Benefits of Recurring Deposit account
- Interest rate:- RD & FD have the same interest rate. Therefore banks pay higher interest as compared to savings accounts.
- Minimum investment:- Banks offer different minimum investment plans to the users. They can choose small investments as low as 100 rupees.
- Investment Term:- Minimum plan of RD is 6 months, and the maximum is 10 years
- Withdrawal:- Customers are not allowed to withdraw money in the mid-range of RD. If the customer still wants to withdraw cash, then the bank can impose a penalty on him.
- Loan:- Loan facility is available on RD.
- Additional interest rate:- Senior Citizens can get a different interest rate compared to others.
- No Limitations:- Single user can open multiple RD
Interest Rate on RDAccount for General Citizens and Senior Citizens from Top Banks of India
|Bank’s Name||Interest Rates for General Citizens||Interest Rates for Senior Citizens|
|SBI – RD Interest Rates||4.40% – 5.50%||4.90% – 6.20%|
|HDFC Bank – RD Interest Rates||4.40% – 5.50%||3.50% – 5.50%|
|ICICI Bank – RD Interest Rates||3.50% – 5.50%||4.90% – 6.25%|
|PNB – RD Interest Rates||4.40% – 5.30%||4.90% – 6.90%|
|BOB – RD Interest Rates||4.30% – 5.25%||4.80% – 5.75%|
|IDFC First Bank – RD Interest Rates||6.75% – 7.25%||6.75% – 7.25%|
|IDBI Bank – RD Interest Rates||7.00% – 7.15%||7.50% – 7.50%|
|AXIS Bank – RD Interest Rates||4.40% – 5.75%||4.65% – 6.50%|
|Indian Bank – RD Interest Rates||6.25% – 6.30%||6.75% – 6.80%|
|Indian Overseas Bank – RD Interest Rates||4.90% – 5.20%||5.40% – 5.75%|
|Canara Bank RD Interest Rates||4.45% – 5.85%||4.95% – 5.75%|
|Kotak Bank – RD Interest Rates||4.30% – 5.20%||4.80% – 5.70%|
|Bandhan Bank – RD Interest Rates||4.50% – 5.25%||5.25% – 5.74%|
|Post Office – RD Interest Rates||5.80% – 5.80%||5.80% – 5.80%|
FAQ (Frequently Asked Questions)
1. Full Form of RD Account
Ans:- Recurring Deposit Account
2. What are the benefits of an RD account?
Ans:- Below are the benefits of RD account:
- The main benefit of an RD account is that banks pay higher interest rates.
- Start with a low amount as 100 monthly bases.
- Save slowly slowly
- Easy documentation
- Best for short term
3. Can I withdraw money from recurring Deposits?
Ans:- Premature withdrawal is not allowed. Even then you would like to withdraw money then the bank will penalize you.
4. Is RD (Recurring Deposit)Risky?
Ans:- RD is a fully risk-free investment with an assured good return.
5. Is Recurring Deposit Safe?
Ans:- In RD, your funds are safe and secure. At the end of RD tenure, you will get a higher interest rate. The interest rate in RD same as the interest rate in FD.