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Top 10 Private Sector Banks Offering Highest Interest Rates On RD

Rajesh has always wanted a bank that would give him the highest interest rates with recurring deposits. He went to his friend, who told him how various banks provide them as a regular deposit, one of the most popular risk-free investing alternatives available to you. Rajesh must deposit a predetermined sum every month for a set length of time under this investing strategy. The interest rate given by the bank with which the Recurring Deposits account is formed will be applied to the invested amount with the highest rd interest rates. The best rd interest rates are a safe alternative for debt investors wishing to grow a considerable amount of money over the short, medium, or long term. The attractive interest rate, equivalent to fixed deposits and unaffected by market volatility, is one of the most tempting advantages of the best rd interest rates.

How Is Interest Calculated in the Recurring Deposit Scheme?

Interest is determined under the recurrent deposit plan after considering many parameters such as funds invested; duration was chosen RD scheme computes the interest using the  rd calculator or the formula below:

 M = R [(1+i) n – 1]/ 1 – (1+i) -1/3

According to the formula,

The letter ‘M’ stands for maturity value.

The letter ‘R’ stands for monthly installment.

The letter ‘n’ stands for the number of quarters.

The letter I stands for interest rate/400.

With the help of rd calculator.

 

The Benefits and Drawbacks of Opening an RD Account

Advantages of RD Account

If you miss a payment, the bank will not, these you if you forget to deposit funds for a month for the highest rd interest rates.

Instills financial discipline: You deposit a particular amount of money every month, which instills financial discipline in you as highest interest rates on recurring deposits.

It is simple to open an RD account: Opening an RD account is quite simple and painless.

Disadvantages of RD Account

Set installment amount: The amount you must deposit each month is fixed.

If you remove your money within the lock-in period, you will not receive any returns.

Top 10 Public Sector Banks With Highest Interest Rates On Recurring Deposits

RDs enable investors to make monthly deposits that generate compound interest during the deposit’s term. However, the return on an RD is determined by the interest rate given by the bank. The higher the interest rate, the higher the return on RD.

Here are the top private sector banks, based on our own research, that are currently offering the highest interest rates on recurring deposits to both regular and senior citizens.

1) Yes Bank: With this private sector lender, you can create a recurring deposit account for a term ranging from 6 months to 10 years. Yes Bank provides interest rates ranging from 5% to 6.50% for the specified tenor. Senior people will receive an extra interest rate of 50 basis points to 75 basis points on RDs as mentioned above. It gives an additional 50 basis points on tenors of up to 33 months.

2) RBL Bank: This private lender provides RD accounts with terms ranging from 6 months to 10 years. RBL Bank provides interest rates ranging from 5.25 percent to 6.75 percent for this tenor. It provides older folks with an additional 50 basis points in interest rate.

3) Axis Bank: This private lender allows its customers to create recurring deposit accounts online using net banking.

4) IDFC First Bank: This private sector lender offers investors to start recurring deposit accounts for as little as Rs100 per month.

Here are the top public sector banks, based on our own research, that are currently offering the highest interest rates on recurring deposits to both regular and senior citizens.

1 State Bank of India – 4.40% to 5.40% 4.90% to 6.20% 08.01.2021

2 Bank of Baroda4.30% to 5.25% 4.80% to 6.25% 16.11.2020

3 Union Bank of India4.40% to 5.50% 4.90% to 6.00% 01/09/2021

4 Canara Bank – 4.40% to 5.25% 4.90% to 5.75% 09.08.2021

5 Punjab National Bank4.40% to 5.25% 4.90% to 5.75% 01.08.2021

6 Indian Bank – 4.00% to 5.25% 4.50% to 5.75% 05.11.2021

Conclusion

Domestic and elderly residents can take advantage of recurring deposits, which give a guaranteed interest rate repaid at maturity and a quarterly compounding bonus. Unlike fixed deposit plans, which need a single deposit investment in a lump amount, recurring deposit schemes demand monthly contributions, making them an excellent choice for individuals with a regular income or those with a low income. 

FAQs:

On the maturity day, would the RD amount be instantly transferred to my bank account?

Yes, the proceeds of your recurring deposit account will be paid into your bank account on the maturity date. If the money has not yet been placed into your bank account, you should contact the bank's customer service right once.

How can I open a recurring deposit account?

You can go to the official website of the bank from which you want to get the recurring deposit service. You may apply by clicking on the 'Apply Now button, which is usually visible on the main page. If you already have a bank account with the stated bank, you can create a recurring deposit account using net banking.

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