Top 10 Banks Promising Best Interest Rates On Recurring Deposits In 2021
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Investment
oi-Vipul Das
A Recurring Deposit is a form of term deposit marketed by banks that enables risk-averse investors, particularly elderly citizens, to deposit a predetermined amount each month, similar to a mutual fund SIP, and earn interest income comparable to that provided on Fixed Deposits or FDs. Investing in recurring deposits is well-known for addressing short-term requirements, so it’s ideal for investors with short-term financial goals who don’t want to risk their portfolio with market-based returns.
Apart from the interest rates, let me make it clear that investing in recurring deposits also falls under the guidelines of DICGC. This implies that recurring deposits just like a fixed deposit account or savings account are also insured up to Rs 5 lakhs by DICGC. By keeping all these factors in mind, here we have compiled the top 10 public, private, and small finance banks that are offering the best interest rates on recurring deposits as of now.
Top 10 Private Sector Banks Promising Higher Interest Rates On Recurring Deposits In 2021
Here are the top 10 private sector banks promising higher interest rates on recurring deposits in 2021:
| Sr No. | Banks | Regular RD Rates | Senior Citizen RD Rates | W.e.f. |
|---|---|---|---|---|
| 1 | Yes Bank | 6.50% | 7.25% | June 3, 2021 |
| 2 | RBL Bank | 6.50% | 7.00% | July 2, 2021 |
| 3 | DCB Bank | 6.50% | 7.00% | 15 May, 2021 |
| 4 | IndusInd Bank | 6.50% | 7.00% | June 4, 2021 |
| 5 | IDFC First Bank | 6.00% | 6.50% | May 1, 2021 |
| 6 | Axis Bank | 5.75% | 6.50% | June 22, 2021 |
| 7 | ICICI Bank | 5.50% | 6.30% | October 21, 2020 |
| 8 | Bandhan Bank | 5.50% | 6.25% | June 7, 2021 |
| 9 | HDFC Bank | 5.50% | 6.00% | August 25, 2020 |
| 10 | Kotak Mahindra Bank | 5.25% | 5.75% | July 23, 2021 |
| Source: Bank Websites |
Top 10 Public Sector Banks With Higher Interest Rates On Recurring Deposits
List of commercial banks offering best interest rates on recurring deposits in 2021:
| Sr No. | Banks | Regular RD Rates | Senior Citizen RD Rates | W.e.f. |
|---|---|---|---|---|
| 1 | Union Bank of India | 5.60% | 6.10% | July 7, 2021 |
| 2 | Canara Bank | 5.50% | 6.00% | 08.02.2021 |
| 3 | Punjab & Sind Bank | 5.30% | 5.80% | 16.05.2021 |
| 4 | Bank of Baroda | 5.25% | 6.25% | 16.11.2020 |
| 5 | IDBI Bank | 5.25% | 5.75% | July 14, 2021 |
| 6 | Punjab National Bank | 5.25% | 5.75% | 01.05.2021 |
| 7 | Indian Overseas Bank | 5.25% | 5.75% | 09.11.2020 |
| 8 | Indian Bank | 5.15% | 5.65% | 05.02.2021 |
| 9 | Bank of India | 5.15% | 5.65% | 01.07.2021 |
| 10 | Central Bank of India | 5.00% | 5.50% | 10.07.2021 |
| Source: Bank Websites |
Top 10 Small Finance Banks Offering Best Interest Rates On Recurring Deposits In 2021
Here are the top 10 small finance banks that are not only promising interest rates up to 8% on recurring deposits but also fall under the deposit insurance cover up to Rs 5 lakhs of DICGC.
| Sr No. | Banks | Regular RD Rates | Senior Citizen RD Rates | W.e.f. |
|---|---|---|---|---|
| 1 | North East Small Finance Bank | 7.50% | 8.00% | April 19, 2021 |
| 2 | Utkarsh Small Finance Bank | 7.00% | 7.50% | July 1, 2021 |
| 3 | Ujjivan Small Finance Bank | 6.75% | 7.25% | March 5, 2021 |
| 4 | Jana Small Finance Bank | 6.75% | 7.25% | June 10, 2021 |
| 5 | Suryoday Small Finance Bank | 6.75% | 6.75% | June 21, 2021 |
| 6 | Equitas Small Finance Bank | 6.50% | 7.00% | June 1, 2021 |
| 7 | Fincare Small Finance Bank | 6.50% | 7.00% | May 17, 2021 |
| 8 | ESAF Small Finance Bank | 6.50% | 7.00% | May 2, 2021 |
| 9 | Capital Small Finance Bank | 6.25% | 6.75% | June 3, 2021 |
| 10 | AU Small Finance Bank | 6.25% | 6.75% | June 23, 2021 |
| Source: Bank Websites |
Story first published: Sunday, July 25, 2021, 13:29 [IST]
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