Recurring Deposit

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What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a popular investment option offered by banks and financial institutions in India, designed to encourage regular savings. It allows individuals to deposit a fixed amount every month for a predetermined tenure, earning a fixed interest rate on their savings. At the end of the tenure, the depositor receives the total amount invested along with the interest earned. RDs are a low-risk investment option, ideal for those looking to build a savings habit while earning assured returns.

Recurring Deposit Interest Rates in India (2024)

Bank Name	General Public Interest Rates p.a.	Senior Citizen Interest Rates p.a.
Axis Bank	3.00% - 7.40%	3.50% - 7.90%
Bandhan Bank	3.00% - 8.05%	3.75% - 8.55%
Bank of Baroda	4.25% - 7.30%	4.75% - 7.80%
HDFC Bank	3.50% - 7.00%	4.00% - 7.50%
ICICI Bank	3.00% - 7.40%	3.50% - 7.90%
IDBI Bank	3.00% - 7.25%	3.50% - 7.80%
IDFC FIRST Bank	3.00% - 7.00%	3.50% - 7.50%
Kotak Mahindra Bank	3.00% - 7.75%	3.50% - 8.25%

Note: Interest rates are subject to change at the discretion of the bank.

Features of Recurring Deposits

Savings Habit

Investing in RD inculcates the habit of regular saving.

Low Entry Point

Start investing with as little as ₹500 per month.

Flexible Tenure

Open an RD account for tenures up to 10 years.

Premature Withdrawal

Some banks allow premature withdrawals, subject to penalties.

Competitive Interest

Earn interest rates equivalent to fixed deposits.

Auto-Deduction

Set standing instructions for automatic monthly deductions.

Eligibility Criteria for Recurring Deposits

Savings Account Holder

The individual must hold a savings account with the bank.

Minors (10+ Years)

Minors above 10 years of age can open an RD account.

Minors with Guardian

Minors under 10 require a legal guardian to open an account.

Organizations

Government, commercial organizations, or companies can open RD accounts.

Frequently Asked Questions (FAQs)

Most banks require a minimum monthly deposit of ₹500, though this may vary by bank.

Yes, some banks allow premature withdrawals, but penalties may apply, reducing the interest earned.

Yes, senior citizens typically receive 0.25% to 0.75% higher interest rates than the general public.

Yes, you can set standing instructions for automatic monthly deductions from your savings account.

Missing an installment may incur a penalty or reduced interest, depending on the bank's policy.

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Save systematically with Loans Wala's Recurring Deposit plans. Enjoy competitive rates, flexible tenures, and a seamless application process.