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Best RD Interest rates in All Banks

More about recurring deposit

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).

 

Taxation

 

  • If the interest exceeds a certain amount i.e. ₹ 10,000 IN a single year then tax is deducted from the RD account which is Tax deducted at source.
  • Income tax also needs to be paid on the earned interest from the RD account of the account holder.
  • If the account holders have no taxable income then they need to submit 15G form on the recurring deposits and the fixed deposits accounts.

 

Interest rate calculation

  • The rate of interest of the recurring deposits (scheme) is calculated on elements like money deposited every month, the scheme that the individual chooses (RD) and the tenure.
  • The interest rate is beneficial whenever the investor invests for the period 15 months to 24 months.
  • For the senior citizens and women, higher interest rates are offered for the RD bank accounts.
  • Also, online RD calculator is available for calculation of interest rate that the individual saves for the principal amount and the tenure.