Recurring deposit interest rates, once determined, do not change during the tenure.Recurring Deposit or RD is a kind of term deposit under which one needs to deposit a fixed amount at fixed interval, which generates interest income.
On maturity, the depositor is paid a lump-sum amount which includes his/her periodic investments and the interest income earned on them.
Recurring deposit interest rates, once determined, do not change during the tenure.
In fact, the Reserve Bank of India ensures that strict guidelines are followed by banks.
Institutions such as small finance banks and post offices also offer the facility of recurring deposit.Here is a comparison of recurring deposit (RD) rates offered by State Bank of India (SBI), IndusInd Bank, HDFC Bank and ICICI Bank:State Bank of IndiaThe following RD interest rates revised from July 30, 2018, according to the bank's website - sbi.co.in:TermInterest rate for general public (% per annum)Interest rate for senior citizens (% per annum)7 days to 45 days5.756.2546 days to 179 days6.256.75180 days to 210 days6.356.85211 days to less than 1 year6.46.91 year to less than 2 year6.77.22 years to less than 3 years6.757.253 years to less than 5 years6.87.35 years and up to 10 years6.857.35IndusInd BankThe following RD interest rates revised from October 5, 2018, according to the bank's website - indusind.com:TenureInterest Rate p.a.(%)Senior Citizen Rates p.a.(%)12 Months88.515 Months7.758.2518 Months7.758.2521 Months7.758.2524 Months7.5827 Months7.5830 Months7.5833 Months7.583 years - less than 5 years7.585 years - 10 years7.257.75HDFC BankRecurring deposit (RD) rates offered by HDFC Bank, revised from August 6, 2018:PeriodInterest Rate (per annum)Senior Citizen Rates (per annum)Effective From6 Months6.25%6.75%June 06,20189 Months6.75%7.25%August 06,201812 Months7.25%7.75%August 06,201815 Months7.25%7.75%August 06,201824 Months7.25%7.75%August 06,201827 Months7.10%7.60%August 06,201836 Months7.10%7.60%August 06,201839 Months7.10%7.60%August 06,201848 Months7.10%7.60%August 06,201860 Months7.10%7.60%August 06,201890 Months6.00%6.50%Jan 06,2017120 Months6.00%6.50%Jan 06,2017ICICI BankRecurring deposit (RD) rates offered by ICICI Bank:Maturity PeriodRate of Interest (% p.a.) w.e.f August 14, 2018GeneralSenior Citizen6 months66.59 months6.5712 months6.757.2515 months77.518 months77.521 months77.524 months77.527 months7.257.7530 months7.257.7533 months7.257.7536 months7.257.75Above 3 years up to 5 years7.257.75Above 5 years up to 10 years77.5However, small finance banks generally offer higher interest rates as compared to many leading banks.