Whenever the RD account is created the value (maturity) is declared to the customer or the individual according to the monthly installments which will be produced on monthly basis.
- The monthly amount should be deposited on a regular basis and the interest is delayed then the interest will be minimized.
- The time period of RD is minimum 6 years and maximum 10 years.
- The interest (difference) will be deducted as a penalty if the amount is not deposited on time.
- The penalty rate is fixed and the interest is compounded on the recurring deposits account.
- The loan can be availed on the Recurring deposit account. It is up to 80 or 90% of the deposited value.
- The Rate of interest is equivalent to the FD (Fixed Deposits).
The banks like Deutsche and Nainital offer the rate (7.25% and 7.50%)
for the time period of 5 years.
Best Interest rates offered by various banks:
- The interest rates are (7.50% and 7.75%) for the banks like Nainital and DHFL for the time period of 1 year.
- The Interest rate of Nainital bank is (7.90%) for the period of years.
- Similarly, the banks like Nainital, Laxmi Vilas Bank, and Karur Vysya Bank offers the highest interest rate of (7.75%, 7.00%7.00%) for the time period of 3 to 4 years.
- The Post office presents with the interest rate of (7.10%) for the recurring deposits scheme.
- Andhra bank offers the interest rates 6.50% for 1 year, 6.50% for 2 years, 6.25% for 3 years, 6.25% for 4 years, 6.25% for 5 years and 6.25% for 5+ years.
- Allahabad bank offers the interest rates 6.50 for 1 year, 6.60 for 2 years, 6.50for 3 years, 6.50for 4 years, 6.50for 5 years and 6.50 for 5+ years.
- ICICI bank offers the interest rates 6.75 for 1 year, 6.75for 2 years, 6.50for 3 years, 6.50for 4 years, 6.50for 5 years and 6.50 for 5+ years.
- HDFC bank offers the interest rates 6.75 for 1 year, 6.25for 2 years, 6for 3 years, 6for 4 years, 6for 5 years and 6.50 for 5+ years.
- J&K bank offers the interest rates 6.25 for 1 year, 6.75 for 2 years, 6.50for 3 years, 6.25for 4 years, 6.25 for 5 years and 6.25 for 5+ years.
Prior to opening an RD account, you necessitate doing the research on the interest rates provided by the different banks for the diverse tenures. It is straightforward to look up the rates on recurrent deposit on the websites to evaluate which banks are providing the highest and beneficial interest rates. Generally, most banks provide interest rates between 7-8% annually, as mentioned above, with variations depending on the tenure and amount. Some banks, like The Ratnakar Bank and Bandhan Bank, offer interest rates more than 8% every year on RDs. Again, it is imperative to stress that interest rates can modify at any time, therefore it is imperative to research the most recent rates on the websites of banks when you are making your mind to open an RD account.