ICICI Bank Revises Recurring Deposit Interest Rates; What Others Pay

ICICI Bank recently revised its recurring deposits interest rates. Recurring Deposit or RD is a kind of term deposit under which one needs to deposit a fixed amount at fixed interval, which generates interest income. On maturity, the depositor is paid a lump-sum amount which includes his/her periodic investments and the interest income earned on them. Recurring deposit interest rates, once determined, do not change during the tenure. In fact, the Reserve Bank of India ensures that strict guidelines are followed by banks. Institutions such as small finance banks and post offices also offer the facility of recurring deposit.

Here is a comparison of recurring deposit (RD) rates offered by ICICI Bank, HDFC Bank and State Bank of India (SBI):

ICICI Bank

Recurring deposit rates offered by ICICI Bank:

Rate of Interest (% p.a.) w.e.f November 15, 2018
Maturity Period General Senior Citizen
6 months 6.25 6.75
9 months 6.5 7
12 months 6.9 7.4
15 months 7.1 7.6
18 months 7.1 7.6
21 months 7.1 7.6
24 months 7.1 7.6
27 months 7.5 8
30 months 7.5 8
33 months 7.5 8
36 months 7.5 8
Above 3 years upto 5 years 7.25 7.75
Above 5 years upto 10 years 7 7.5

HDFC Bank

Recurring deposit rates offered by HDFC Bank:

Period Interest Rate (per annum) Senior Citizen Rates (per annum) Effective From
6 Months 6.25% 6.75% Jun 06,2018
9 Months 6.75% 7.25% Aug 06,2018
12 Months 7.30% 7.80% Nov 06,2018
15 Months 7.30% 7.80% Nov 06,2018
24 Months 7.30% 7.80% Nov 06,2018
27 Months 7.40% 7.90% Nov 06,2018
36 Months 7.40% 7.90% Nov 06,2018
39 Months 7.25% 7.75% Nov 06,2018
48 Months 7.25% 7.75% Nov 06,2018
60 Months 7.25% 7.75% Nov 06,2018
90 Months 6.50% 7.00% Nov 06,2018
120 Months 6.50% 7.00% Nov 06,2018

State Bank of India

RD interest rates according to the bank’s website – sbi.co.in:

Maturity period (term) Interest rate with effect from July 30, 2018
General public Senior citizen
7 days to 45 days 5.75 6.25
46 days to 179 days 6.25 6.75
180 days to 210 days 6.35 6.85
211 days to less than 1 year 6.4 6.9
1 year to less than 2 year 6.7 7.2
2 years to less than 3 years 6.75 7.25
3 years to less than 5 years 6.8 7.3
5 years and up to 10 years 6.85 7.35
(Source: sbi.co.in)

However, small finance banks generally offer higher interest rates as compared to many leading banks.

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