Recurring Deposit is the best way for people who wants to save a small amount of money monthly from their income.With this savings one can easily accumulate a big amount of money for their future goal.
I am giving a small example- Suppose Mr. Kumar dreams for a bike for a long time but he has not ability to buy a bike by giving money in a single time,so he open a recurring account with IDBI Bank.He have to pay Rs.95000 /- for bike.So he planned to save Rs. 6000 /- per month with 9.0 % interest rate for 15 months.Now his accumulated amount will be about Rs. 96000 /- as about Rs
. 6000 /- as interest .His dream become true after 15 months.
This is the power of a recurring deposit,one of the best small savings.
Now we will give a small guidance on recurring deposits interest rates,safety and more.
Comparison of Interest rates of Recurring Deposit in various banks.
| Name of Bank | Interest Rate | Period of Deposit | Safety Rating | To Know More |
| State Bank of India (SBI) | 8.75 % | 1 Yr –< 2 Yr | High | |
| IDBI Bank Ltd | 8.75 to 9.00 % | up to 1 year and 1 Yr –< 2 Yr | High | |
| ICICI Bank | 7.50 to 8.75 % | up to 1 year and 1 Yr –< 2 Yr | Medium | |
| Axis Bank | 8.50 % | 1 Yr –< 2 Yr | Medium | |
| HDFC Bank | 8.00 to 8.75 % | up to 1 year and 1 Yr –< 2 Yr | Medium | |
| Indian Overseas Bank | 9.00 % | 1 Yr –< 2 Yr | Medium | |
| Punjab National Bank (PNB) | 9.00 % | 1 Yr –< 2 Yr | Medium | |
| United Bank of India (UBI) | 8.50 to 9.00 % | up to 1 year and 1 Yr –< 2 Yr | High | |
| Indian Post Office (IPO) | 8.40 % | 5 Yr | High |
This above is the current scenario of Interest Rates at Banks in India.
Use this HDFC Bank’s Calculator for calculating Interest of Recurring Deposit.
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