24 Feb , 2023 By : Monika Singh
Recurring deposit schemes allow account holders to earn interest income on investing a fixed sum of amount every month. With the bank deposit rates going up recently, recurring deposit schemes have also become attractive, especially for those who cannot invest a big amount in a Fixed Deposit scheme in one go.
As recurring deposits allow account holders to deposit very small amounts on a monthly basis, they are very popular among senior citizens who do not have a very large monthly cash flow but want to save as much as they can month on month. Interestingly, several banks and financial institutions provide similar interest rates on both FDs and RDs.
In this article, let’s look at the highest interest rates on recurring deposits offered by SBI, Post Office, Punjab National Bank and HDFC Bank to senior citizens:
SBI allows a minimum deposit of Rs 100 and thereafter in multiples of Rs 10 in RD accounts. RD interest rates for SBI customers are the same as the term deposit rates offered by the bank to the general Public and Senior Citizens. As such, senior citizens can earn up to 7.5% interest in RDs of 5 years to 10 years. The same rate is also applicable for RD of 2 to 3 years. On RD of 1 to 2 years, SBI is offering 7.3% interest.
The Post Office also allows a minimum deposit of Rs 100 and thereafter in multiples of Rs 10 in the National Savings Recurring Deposit Account. The RD interest rate for Post Office customers is 5.8% (quarterly compounded) with effect from January 1, 2023. The post office RD account matures after 5 years from the date of account opening.
You can open an RD account in PNB for a period of 6 months to 120 months. PNB allows RDs in multiples of Rs 100. The RD interest rates for PNB customers are the same as the term deposit rates offered by the bank to the Public and Senior Citizens. As such, senior citizens can earn up to 7.55% interest on RD of 2 to 3 years. The bank is offering 7.35% interest on RD of 5 to 10 years.
HDFC Bank is offering 7.75% interest rate on recurring deposits of 90 months and 120 months to senior citizens. On deposits of 24 months, 27 months, 36 months, 29 months, 48 months and 60 months, HDFC Bank is offering 7.5% interest on RD accounts.
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