Just as banks or post offices give the option of Fixed Deposit (FD) for investment, similarly they also give the option of RD i.e. Recurring Deposit. You can earn huge profits by investing in RD. Many banks are offering up to 10% interest on this.
If you are looking for guaranteed returns without taking any risk, then you can invest in Recurring Deposit (RD). This is such an investment option in which risk-averse investors prefer to invest their money. The risk of sinking the money invested in RD is less. Banks provide the facility of getting RD for a period of one year to 10 years. You can also use it during emergency. The interest rates of recurring deposits have also reached close to 10 percent.
Recurring Deposit is a debt instrument and it guarantees investors the safety of their capital. It is a good means of creating funds in the short term. The advantage of RD is that you can deposit small amounts every month. Generally, the return of RD is less than the inflation rate.
Same interest rate in FD and RD
Fixed deposit and recurring deposit interest rates are same in most cases. In May 2023, Suryoday Small Finance Bank (SSFB) has announced 9.6% interest on 5-year FD/RD for senior citizens. Unity Small Finance Bank is also giving 9.5 percent interest to senior citizens. Common citizens are also getting huge interest in these banks. The highest FD/RD interest rate is also around 9% in these banks.
1. Suryoday Small Finance Bank (SSFB) is giving 9.6 percent interest on 5-year RD to senior citizens. At the same time, the common citizen can get 9.1 percent interest on RD.
2. Unity Small Finance Bank is giving up to 9.5% interest on deposits of 1001 days and 8.15% interest on deposits of 5 years to senior citizens. At the same time, common citizens can get 9.1 percent interest on 1001 days deposit and 7.65 percent interest on 5 year RD.
3. State Bank of India (SBI) is offering 7.5% interest on 5-year RD to senior citizens. At the same time, the common citizen can get 6.6 percent interest on RD.
4. Private sector HDFC Bank is also giving 7.5% interest on RD of 5 years to senior citizens. At the same time, the common citizen can get 7 percent interest on RD.
5. ICICI Bank is also giving 7.5% interest on RD of 5 years to senior citizens. Others can get 6.9% interest on 5 years RD.