The interest rates offered on recurring deposits fluctuate with inflation.
Banks offer Recurring Deposits with tenures ranging from 1 to 10 years.
Recurring Deposits provide customers with the flexibility to invest an amount of their choice every month and save money easily. BankBazaar states that these accounts are offered by most banks and non-banking financial companies in India with tenures ranging from six months to ten years. On the other hand, a fixed deposit is an investment option in which people invest a fixed amount for a fixed period at a predetermined rate of interest.
Apart from FDs, Recurring Deposits are also guaranteed to be a safer option for investment. These deposits are a risk free option and also offer an interest rate of 10%. However, these interest rates fluctuate with inflation. Banks offer Recurring Deposits with tenures ranging from 1 to 10 years.
These banks are giving interest rate up to 9.6% on recurring deposits-
Suryoday Small Finance Bank-
Senior citizens can earn an interest rate of 9.6 per cent on a recurring deposit with a tenure of 5 years. For other customers, the rate is 9.1 percent.
Unity Small Finance Bank- This bank will offer 9.5 percent interest rate to senior citizens on RDs maturing in 1001 days. Senior citizens will be able to avail an interest rate of 8.15 per cent on Recurring Deposits for a period of 5 years. Other customers will get an interest rate of 9.1 percent on deposits with a tenure of 1001 days and 7.65 percent on RDs maturing in 5 years.
State Bank of India – This bank is offering 7.5 per cent interest rate on Recurring Deposits for the tenure of 5 years to senior citizens. The interest rate for other customers will be 6.6 per cent.
HDFC Bank- This private lender is offering 7.5 per cent interest rate to senior citizens on recurring deposits that will mature in 5 years. Other customers can earn 7 percent interest rate on deposits.
ICICI Bank- Senior investors can avail an interest rate of 7.5 per cent on Recurring Deposit. Other customers will get an interest rate of 6.9 per cent on RD for a period of 5 years.