RD Interest Rates 2020: Compare Recurring Deposit Interest Rates
RD interest rates

RD Interest Rates 2020: Compare Recurring Deposit Interest Rates

Recurring deposits are the best way to start a habit of saving money on a regular monthly basis. 

You can invest in RDs for a short term goal to save money for an upcoming expense like purchasing a new bike or planning an annual vacation.

Let’s have a look at the best RD interest rates in India.

Highest RD Interest Rates 2020 (1 Yr)

You can look at the top 3 banks which give the highest RD interest rates. Top 3 highest RD interest paying banks are as below.

#1. Ujjivan Small Bank 

Ujjivan Small Bank has become the highest interest-paying bank in FDs as well as RDs. 

You can start with as minimum as Rs. 100. The minimum depositing period is 6 months.

Let’s check the RD interest rates as below.

  • For Individual – 8.00%
  • For Senior citizen – 8.50%

#2. Yes Bank 

Yes Bank is the second-highest RD interest-paying bank on recurring deposits.

Let’s check the RD interest rates as below.

  • For Individual – 7.25%
  • For Senior citizen – 7.75%

#2. IDFC First Bank 

IDFC First Bank pays higher interest on recurring deposits. Let’s check the RD interest rates as below.

  • For Individual – 7.25%
  • For Senior citizen – 7.75%

Best RD Interest Rates 2020

You can check out the top 10 banks with best RD interest rates in India in the table below.

BankInterest Rate IndividualInterest Rate Senior Citizen
Ujjivan Small Finance Bank6.50% – 8.00%7.00% – 8.50%
Yes bank6.85% – 7.50%7.35% – 8.00%
RBL Bank6.65% – 7.60%7.15% – 8.10%
IDFC First Bank6.75% – 7.25%7.25% – 7.75%
Lakshmi Vilas Bank6.25% – 6.75%6.75% – 7.35%
AU Small Finance Bank5.75% – 7.53%6.25% – 8.03%
Indian bank6.20% – 6.45%6.20% – 6.45%
Axis Bank5.80% – 6.50%6.05% – 7.15%
Indian Overseas Bank5.75% – 6.10%6.25% – 6.60%
Karur Vysya Bank4.50% – 6.25%5.70% – 6.80%

Current RD Interest Rates 2020

Let’s discuss all the banks with their RD interest rates one by one.

#1. SBI RD Interest Rates 2020

State bank of India has slashed RD & FD interest rates to 0.5% for an individual earlier the interest rate on a 1-year RD now reduced to 5.70%. 

DurationInterest Rates
(%ge)
Interest Rates for Senior Citizens
(%ge)
6 months to 12 months5.005.50
12 months to 24 months5.706.20
24 months to 36 months5.706.20
36 months to 60 months5.706.20
60 months to 120 months5.706.20

#2. HDFC Bank RD Interest Rates 2020

You can invest in HDFC bank RD with a minimum of Rs. 1000 for at least 6 months. There’s no maximum limit on investment. 

DurationRegular Interest Rate
(%age)
Senior Citizen Interest Rate
(%age)
6 Months4.755.25
9 Months5.255.75
12 Months5.806.30
15 Months5.806.30
24 Months5.806.30
27 Months6.006.50
36 Months6.006.50
39 Months6.006.50
48 Months6.006.50
60 Months6.006.50
90 Months6.006.50
120 Months6.006.50

Also check outSavings account Interest rate

#3. Axis Bank RD Interest Rates 2020

You can get better returns with Axis bank RD as compared to its competitor nationalized banks like HDFC and ICICI. Let’s look at the interest rates slab wise.

DurationRegular Interest Rates
(%ge)
Interest Rates for Senior Citizens 
(%ge)
6 months to 9 months5.806.05
9 months to 12 months6.056.30
12 months to 18 months6.407.05
18 months to 24 months6.507.15
24 months to 36 months6.507.00
36 months to 60 months6.507.00
60 months to 120 months6.507.00

#4. ICICI Bank RD Interest Rates 2020

ICICI bank has also reduced interest rates effective from April 1. You can still get decent interest rates while enjoying their high-end platforms.

DurationRegular Interest Rates
(%ge)
Interest Rates for Senior Citizens 
(%ge)
6 months4.755.25
9 months5.255.75
12 months5.806.30
15 months5.806.30
18 months5.806.30
21 months5.806.30
24 months5.806.30
27 months6.006.50
36 months onwards6.006.50

#5. Yes Bank RD Interest Rates 2020

Yes bank is among the top highest RD interest rate paying bank.  You can look their different interest rate slabs.

DurationRegular Interest Rates
(%ge)
Interest Rates for Senior Citizens 
(%ge)
6 Months6.857.35
9 Months7.157.65
12 Months7.257.75
15 Months7.257.75
18 Months7.257.75
21 Months7.257.75
24 Months7.508.00
27 Months7.508.00
30 Months7.508.00
33 Months7.508.00
3 years upto 10 Years7.257.75

#6. IDFC First Bank RD Interest Rates 2020

You can go for IDFC First for higher returns on your RD account. IDFC First is among the Top 3 highest RD interest rate paying banks.

DurationRegular Interest Rates
(%ge)
Interest Rates for Senior Citizens 
(%ge)
6 months6.757.25
9 months7.007.50
12 months to 36 months7.257.75
39 months to 90 months7.207.70
120 Months7.007.50

#7. Canara Bank RD Interest Rates 2020

Canara bank is one of the oldest public sector banks but public sector banks don’t pay high returns when compared to the private sector banks.

DurationRegular Interest Rates
(%ge)
Interest Rates for Senior Citizens 
(%ge)
6 months5.005.00
9 months5.506.00
12 months5.506.00
24 months5.856.35
36 months5.806.30
60 months onwards5.806.30

#8. Indian Overseas Bank RD Interest Rates 2020

IOB still gives you slightly higher interest on recurring deposit as compared to big private banks and public sector banks. 

DurationRegular Interest Rates
(%ge)
Interest Rates for Senior Citizens
(%ge)
6 months to 9 months5.756.25
9 months to 12 months6.106.60
12 months to 24 months6.106.60
24 months to 36 months6.106.60
36 months to 60 months6.106.60
60 months to 120 months6.106.60

#9. PNB RD Interest Rates 2020

India’s second largest bank is popular for their wide network and their hold in rural India. Let’s have a glance at their interest rates.

DurationRegular Interest Rates(%ge)Interest Rates for Senior Citizens (%ge)
6 months to 9 months5.506.00
9 months to 12 months5.606.10
12 months to 24 months5.606.10
24 months to 36 months5.606.10
36 months to 60 months5.606.10
60 months to 120 months5.606.10

#10. IDBI Bank RD Interest Rates 2020

IDBI bank has different slabs for different duration of recurring deposits. You can increase or decrease the tenure for maximum returns.

DurationRegular Interest Rates(%ge)Interest Rates for Senior Citizens (%ge)
12 months5.856.35
12 months to 24 months5.756.25
24 months to 36 months5.806.30
36 months to 60 months5.756.25
60 months5.906.40
60 months to 84 months5.806.30
84 months to 120 months5.806.30

#11. Indian Bank RD Interest Rates 2020

Indian Bank is an exception in public sector bank when it comes to paying interest on RDs or FDs. It’s among the best interest paying banks.

DurationRegular Interest Rates(%ge)Interest Rates for Senior Citizens (%ge)
6 months6.206.20
9 months6.256.25
12 months6.456.45
15 months6.456.45
18 months6.456.45
21 months6.456.45
24 months6.356.35
27 months6.356.35
36 months 6.356.35
37 months onwards6.256.25

#12. Karur Vysya Bank RD Interest Rates

KVB is the last bank among top 10 highest interest paying banks. You can enjoy up to 6.25% return on 5 year RD.

DurationRegular Interest Rates
(%ge)
Interest Rates for Senior Citizens 
(%ge)
6 months4.505.70
9 months5.006.20
12 months5.256.25
24 months5.506.75
36 months6.356.80
60 months6.256.80

#13. UCO Bank RD Interest Rates

UCO bank offes RD interest rates in a wide range starting from 4.7% till 5.80%.

DurationRegular Interest Rates
(%ge)
Interest Rates for Senior Citizens
(%ge)
6 months4.755.00
9 months5.555.80
12 months5.856.10
24 months5.856.35
36 months5.856.35
60 months 5.806.30
120 months5.806.30

#14. Bank of Baroda RD Interest Rates

Bank of Baroda offers RD interest rates as below.

DurationInterest Rates For Public(%ge)Interest Rates for Senior Citizens (%ge)
6 months4.505.00
9 months5.005.50
12 months5.005.50
24 months5.706.25
36 months onwards5.706.25

#15. Kotak Mahindra Bank RD Interest Rates

Kotak Mahindra bank is very aggressive in paying benefits to their customers. You can expect an interest rate of 5.90% as max for regular pesona nd 6.40% for senior citizens.

DurationRegular Interest Rates Senior Citizen Rates 
6 Months5.50%6.00%
9 Months5.50%6.00%
12 Months5.75%6.25%
15 Months5.90%6.40%
18 Months5.90%6.40%
21 Months5.90%6.40%
24 Months5.90%6.40%
27 Months5.90%6.40%
30 Months5.90%6.40%
33 Months5.90%6.40%
3 years – less than 4 years5.90%6.40%
4 years – less than 5 years5.90%6.40%
5 years – 10years5.50%6.00%

#16. Union Bank RD Interest Rates

Union bank pays you interest in the range of 5.25% to 5.80% on your recurring account. Union bank doesn’t offer any enhanced interest rates for senior citizens.

DurationRegular Interest Rates(%ge)Interest Rates for Senior Citizens (%ge)
6 months5.255.25
9 months5.505.50
12 months5.755.75
18 months5.755.75
24 months5.755.75
36 months5.805.80
60 months5.805.80
120 months5.805.80

#17. Lakshmi Vilas Bank RD Interest Rates 2020

DurationInterest Rate Regular(%ge)Interest Rate Senior Citizen(%ge)
6 months6.256.75
9 months6.507.00
12 months6.757.35
24 months6.757.35
36 months6.507.10
60 months up to 120 months6.507.10

#18. RBL Bank RD Interest Rates 2020 

RBL bank is another contender to pay you wonderful returns on your recurring account. RBL bank is in the top 10 highest paying banks of India.

DurationInterest Rate Regular
(%ge)
Interest Rate Senior Citizen
(%ge)
6 months6.657.15
12 months6.757.25
15 months7.057.55
18 months7.157.65
24 months7.508.00
36 months7.608.10
60 months7.508.00
120 months7.257.75

#19. Ujjivan Small Bank RD Interest Rates 2020

Ujjivan is the highest RD interest paying bank in the country. You will be amaze to see the interest rates they are offering to the customers.

DurationRegular Interest RateSenior Citizen Interest Rate
6 months to 9 months7.00%7.50%
12months to 24 months8.00%8.50%
27 months to 36 months7.50%8.00%
39 months to 60 months7.00%7.50%
63 months to 120 months6.50%7.00%

#20. Au Small Finance Bank RD Interest Rates

Just like other small finance banks, Au Small Finance bank gives you better yields on your recurring deposits. Let’s have a look at the interest rates.

DurationRegular Interest Rate
(%age)
Senior Citizen Interest Rate
(%age)
3 Months5.756.25
4 Months to 6 Months6.256.75
7 Months to 12 Months6.757.25
13 Months to 15 months7.307.80
16 Months to 18 months7.257.75
19 Months to 24 Months7.257.75
25 Months to 36 Months7.538.03
37 Months to 45 Months7.257.75
46 Months to 60 Months7.257.75
61 Months to 120 Months7.007.50

Post Office RD Interest Rates

Post office is still the prefered choice among rural India. Post office is giving almost same interest as given by public sector banks. However, Post office pays more on the fixed deposits than on RD if you compare.

DurationInterest Rates
5 years5.8%

You can extend RD for a further 5 years by giving an application at your post office.

Check outPPF Inerest rate

RD Interest Rates Comparison

You can check all the banks and compare their RD interest rates at one place. I have curated a table below for your better understanding.

BankInterest Rate IndividualInterest Rate Senior Citizen
SBI5.00% – 5.70%5.50% – 6.20%
ICICI Bank4.75% – 6.00%5.25% – 6.50%
Ujjivan Small Finance Bank6.50% – 8.00%7.00% – 8.50%
Yes bank6.85% – 7.50%7.35% – 8.00%
RBL Bank6.65% – 7.60%7.15% – 8.10%
IDFC First Bank6.75% – 7.25%7.25% – 7.75%
Lakshmi Vilas Bank6.25% – 6.75%6.75% – 7.35%
AU Small Finance Bank5.75% – 7.53%6.25% – 8.03%
Indian bank6.20% – 6.45%6.20% – 6.45%
Axis Bank5.80% – 6.50%6.05% – 7.15%
Indian Overseas Bank5.75% – 6.10%6.25% – 6.60%
HDFC Bank4.75% – 6.00%5.25% – 6.50%
Canara Bank5.00% – 5.85%5.00% – 6.35%
Punjab National Bank5.50% – 5.60%6.00% – 6.20%
IDBI Bank5.75% – 5.90%6.25% – 6.40%
UCO Bank4.75% – 5.80%5.25% – 6.35%
Bank of Baroda4.50% – 5.70%5.00% – 6.25%
Kotak Mahindra Bank5.50% – 5.90%6.00% – 6.40%
Karur Vysya Bank4.50% – 6.25%5.70% – 6.80%
Union Bank5.25% – 5.80%5.25% – 5.80%

You would like to checkEPF interest rate

Recurring Deposit Interest Calculator

Let me show you how to calculate recurring deposit interest formula with example.

RD Interest Calculation Formula

M = P[(1+R) (n-1)] / [1-(1+R)^(-1/3)]

Where, 

M = Maturity value

P = Monthly Instalment

n = Tenure (no. of quarters)

R = Rate of interest/400 (compounded quarterly)

For example, You are investing Rs 5,000 for 2 years (24 months) RD at an interest rate of 8% (for easy calculations), the maturity value will be as below.

M = 5000*[(1+8/400) (8-1)]/[1-(1+8/400)^(-1/3)] = 62730.85

Total maturity = Rs. 62,730.85

Interest earned = Rs. 2,730.85

Conclusion 

Invest RD only if you are saving money for a short term goal. Otherwise, it’s better to invest in high return segments like mutual funds through monthly SIP.

If you have any questions regarding fixed deposits, do let me know in the comments.

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