This is the second time that the private sector bank has increased the interest rate of RD account this month. The last time the bank increased the RD interest rate on December 9, 2022. After the change, the private sector bank is offering an interest rate of 7 per cent per annum on RD tenure between 15 months to 21 months.

How much has been increased

The interest rate on RD account has been increased by 75 basis points (100 basis points/bps = 1%) for certain tenures. The bank has increased the interest rate on RDs for 6 months, 12 months, 15 months, 18 months and 21 months. The interest rate offered on RD account opened by senior citizens has also been increased. The revision in RD account interest rate is only for fixed tenure and up to 50 bps. RD account interest rate has been increased for 6 months, 12 months, 15 months, 18 months and 21 months.

General Recurring Deposit Interest Rate

Senior citizens get more interest

Senior citizens planning to open a Recurring Deposit account will be eligible for higher interest rates in Kotak Mahindra Bank. The highest interest rate offered on Senior Citizens RD accounts is 7.50 per cent per annum for a tenure between 15 months to 21 months. Kotak Mahindra Bank is offering an RD tenure of minimum 6 months and maximum 10 years.

Senior Citizen Recurring Deposit Interest Rate

Penalty on RD account

If there is a delay in the scheduled RD installment payment or premature closure of the RD account, then a fine is imposed on the RD account holder. As per the website of Kotak Mahindra Bank, late payment of RD installment will attract a fine. The applicable interest rate on Fine RD account will be 2% per annum. The penalty for premature withdrawal of RD depends on when it is withdrawn. If the RD account is closed prematurely within one month of deposit, no interest will be charged.

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On the other hand, Recurring Deposit i.e. RD is like a piggy bank, in which you save a fixed amount every month and interest is also charged on it from the bank. If you are planning to invest in FD or RD, then there is good news for you. Recently four banks have increased the interest rates on RD and FD. Know about them here so that you can invest in them after seeing your profits.

These banks increased interest

Axis Bank has increased the interest on FDs by 0.75% to 6.20%. The new rate has come into effect from October 14. At the same time, HDFC Bank has increased the interest rates of FD by 75 basis points i.e. 0.75 percent. At the same time, the bank has increased the interest on its RD by 50 basis points i.e. 0.50 percent. The new rates have come into effect from 11 October 2022. The bank will give 4.25% to 6.10% interest to its general customers on different recurring deposits of 6 months to 12 months. Apart from these banks, Equitas Small Finance Bank has increased the interest rate on savings accounts, FDs and RDs.

SBI interest rates applicable from today

Apart from this, the country’s largest bank SBI has also increased the interest rates on FDs by up to 20 basis points. The new rates will be applicable on FDs below Rs 2 crore. The new rates will be applicable from October 15, 2022. SBI has increased the interest rate on FDs between one year and less than two years from 5.45 per cent to 5.60 per cent.

FDs of two years and less than three years will now get 5.65 percent interest instead of 5.50 percent. At the same time, the interest rate between three years and less than five years has now increased from 5.60 percent to 5.80 percent. At the same time, the interest rate on FDs ranging from five years to 10 years has now increased from 5.65 percent to 5.85 percent. Apart from this, interest rates have been increased from 7 days to 45 days, 46 days to 179 days, on retail domestic term deposits from 180 to 210 days and 211 days on FDs of less than one year and senior citizens FDs.

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