In the October-December quarter, the Post Office has increased the interest rate on RD to 6.7 percent. You can get information about where it would be better for you to invest your money in the bank or post office and which of these places can provide better interest and facilities.

What is recurring deposit?

RD is a kind of systematic saving plan, where you save every month and keep depositing your money for a few years. You get this money collected along with interest after the completion of the stipulated period of RD. Therefore this scheme is very much liked in middle class families.

How are RDs of bank and post office different?

The biggest difference between RD of bank and post office is the time period. While banks offer you to choose the tenure from 6 months to five years, the post office has RD only for five years.

What is the difference in interest rates?

If we look at the interest rates on RD, only a few private banks are ahead of the post office. Most banks give less interest on RD than post offices. Only HDFC Bank, ICICI Bank, Axis Bank, Canara Bank and Bank of Baroda (BOB) are offering higher interest. Their interest rates range from 6.75 percent to 7 percent.

Who can open RD account

To open an RD account, you must be a citizen of India. Even if your age is less than 10 years, this account can be opened with your guardian. RD can also be opened as a joint account.

With how much money can you start investing?

You can open this account in the post office with a minimum of Rs 100 per month. Maximum you can put any amount of money. Since RD account is backed by the Government of India, there is no risk in this scheme.

Banks have different schemes

However, the RD scheme of the bank is different from that of the post office. In this also you can start with Rs 100 per month. But, the thing to note is that your total deposit and interest on it should not exceed Rs 5 lakh. Only amounts up to Rs 5 lakh are covered under the deposit insurance program.

How to withdraw money before time is up

You can close RD account in post office only after completion of three years. However, in such a situation, you will get only the interest on the savings account. Apart from this, you can also take loan on RD account, on which the amount can be repaid in installments by paying 2% more interest. Since there is no lock-in period in most banks, it is quite easy to withdraw money before time. However, you may have to pay a fine.

Income tax on RD

You do not get tax benefits on RD account. Apart from this, the interest received on maturity is considered as income, hence you will have to pay TDS.

Where is it better to invest money, bank or post office?

Your RD account is safe both in bank and post office. However, compared to banks, the post office gives you more guarantee that your money is safe. But if we look at the simple rules for closing the account, the banks win. Therefore, you can take a decision keeping your needs in mind.

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Many banks have increased interest rates

You can open RD through offline, online or mobile banking. State Bank of India, HDFC Bank and ICICI Bank have increased the interest on Recurring Deposit ie RD. Now these banks are offering more interest than before. If you are also thinking of investing on RD, then we tell you how much interest you are getting in which bank.

What is RD Scheme?

RD is a small saving scheme. In this, you can also open an account from post office or banks and you can invest in it only for 5 years. On investing money in this, you are given much better interest from the banks and you are given many facilities on getting RD done by the bank. Let us tell you that all banks pay different interest on RD.

SBI RD interest rate

State Bank of India is giving you interest ranging from 6.80 to 7 percent from 12 months to 120 months. In this you will have to invest 100 rupees every month.

PNB RD interest rate

PNB Bank gives interest ranging from 5.5 to 7.25 percent on RDs of 6 months to 10 months. You can pay RD even on the last day of installment.

HDFC Bank RD Interest

HDFC Bank gives you 4.5 to 7.10 percent interest on RD ranging from 6 months to 120 months, in which you have to invest every day.

ICICI Bank RD Interest Rate

ICICI Bank gives you 4.75 to 7.10 percent interest on RDs ranging from 6 months to 120 months. In which you can invest at least 500 rupees.

Yes Bank RD Interest Rate

Yes Bank gives you 6 to 7.50 percent interest on RD ranging from 6 months to 10 years.

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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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Where on the one hand government and private sector banks across the country are increasing the interest rates of their loans. On the other hand, he is also continuously increasing his Bank Deposit Schemes. Recently many banks have decided to increase the interest rate in their Recurring Deposit Schemes.

These banks are State Bank of India, HDFC Bank and ICICI Bank. All these banks have increased their RD rates. In such a situation, customers are getting a tremendous return of 6.20% on FDs up to 2 years. Let us know about the interest rate offered by different banks on RD scheme-

State Bank of India RD Rates

SBI (SBI RD Rates) has increased the interest rates of its RD scheme on 22 October. The bank has taken this decision after the decision of RBI to increase the repo rate. The bank is now offering interest rates ranging from 6.10% to 6.25% on RD schemes of 1 to 10 years. SBI is offering 6.10% interest rate on 1 to 2 year FD scheme, 6.25% on 2 to 3 year RD scheme, 6.10% on 3 to 5 year scheme and 6.10% on 5 to 10 year scheme. .

HDFC Bank RD Rates

Large private sector bank HDFC Bank has decided to increase its RD rates every period. The bank is getting 4.50% interest rate on 6 months RD, 5.25% on 9 months RD, 6.10% on 12 months RD, 6.15% on 15 months to 24 months RD. On the other hand, if you are getting 6.20% interest rate on RD of 90 to 120 months in the bank. The new rates of the bank have been implemented from 26 October 2022.

ICICI Bank RD Rates

ICICI Bank is offering its customers interest rates ranging from 4.25% to 6.20% on RD schemes of 6 months to 10 years. These new rates have come into effect from 18 October 2022. Banks offer RD schemes for more than 6 months on a multiple of 3 months. In this case, the maximum interest rate you can get is 6.20%.

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