Image Source : FREEPIK SBI, HDFC, ICICI increase recurring deposit interest rates
The interest rates on fixed deposits and recurring deposits at Indian banks have been increased by a record amount. Banks including State Bank of India, HDFC Bank, and ICICI Bank have increased their rates. Depending on the tenure and the bank, these interest rates may vary.
Investors in the recurring deposit plan can accumulate a sizable amount at maturity, by making little monthly instalments. The interest rates for recurring deposits are determined using a quarterly compounded formula. The bank and tenure that clients choose affect the interest rates.
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Recurring deposit interest rates will rise along with banks’ fixed deposit interest rates. The RD interest rates provided by SBI, HDFC Bank, ICICI Bank are compared below:
Interest rates for SBI Recurring deposit
Interest rates from 6.80 to 7% are available from the State Bank of India (SBI) for maturities between 12 and 120 months. The monthly minimum deposit is Rs 100. (subsequently in multiples of Rs 10). These prices are valid beginning on February 15, 2023. If the client doesn’t make six consecutive deposits, the bank will cancel the account. The account holder will then receive the remaining funds.
Interest rates of HDFC Recurring deposit
For terms maturing between six months and 120 months, HDFC Bank provides citizens RD interest rates ranging from 4.5% to 7.10%. The 15-month rate, which has an interest rate of 7.10%, came into effect on February 24, 2023; interest rates for other tenures came into effect from January 24, 2023.
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Interest rates of ICICI Recurring deposit
For terms ranging from six months to ten years, ICICI Bank provides citizens RD interest rates between 4.75 percent and 7.10 percent. The first month’s minimum deposit is Rs 500, and subsequent deposits are made in multiples of Rs 100. As of February 24, 2023, these rates are in effect.
FAQs
Q1 What is the maximum rate of Interest in a Recurring deposit?
Recurring deposit generally ranges between 7-8%.
Q2 What is the minimum amount which can be invested in a recurring deposit?
It varies from bank to bank, but it should be in a multiple of 10.
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