Recurring Deposit rate hike in 2023: Not just fixed deposits, the interest rates for recurring deposits in banks have also jumped to near 10% in the new repo rate regime steered by the Reserve Bank of India (RBI) since last year. While the repo rate has increased to 6.5% from 4.4% in May 2022, bank deposit rates including RDs have also gone up in one year.
The interest rates for fixed deposits and recurring deposits are the same in most cases. In May 2023, Suryoday Small Finance Bank (SSFB) announced 9.6% interest on 5-year FD/RD for senior citizens, which is almost 10%. The Unity Small Finance Bank is also offering 9.5% FD/RD interest to senior citizens. Interestingly, the highest FD/RD interest rate for general citizens is also around 9% in these banks.
Here’s a look at RD rates offered by 5 banks.
Suryoday Small Finance Bank (SSFB)
Suryoday Small Finance Bank (SSFB) is offering 9.6% interest on 5-year RD to senior citizens. Others can get 9.1% interest on RD. A monthly RD of Rs 5000 by a senior citizen in this bank will grow to approx. Rs 3.85 lakh in 5 years.
Also Read: Fixed Deposit interest rate for senior citizens jumps again: How much should you invest in a bank?
Unity Small Finance Bank (Unity Bank)
Unity Small Finance Bank (Unity Bank) is offering up to 9.5% interest deposits for 1001 days to senior citizens. For deposits of 5 years, the Unity Bank is offering 8.15% interest to senior citizens. Others can get 9.1% interest on deposits of 1001 days and 7.65% interest on RD of 5 years. A monthly RD of Rs 5000 by a senior citizen in this bank will grow to approx. Rs 3.7 lakhs in 5 years.
State Bank of India R.D
State Bank of India (SBI) is offering 7.5% interest on 5-year RD to senior citizens. Others can get 6.6% interest on RD. A monthly RD of Rs 5000 by a senior citizen in this bank will grow to approx. Rs 3.6 lakh in 5 years.
HDFC Bank RD
HDFC Bank is also offering 7.5% interest on 5-year RD to senior citizens. Others can get 7% interest on RD. A monthly RD of Rs 5000 by a senior citizen in this bank will grow to approx Rs 3.6 lakh in 5 years at 7.5% interest. For RDs of 7.5 years and 10 years, HDFC Bank is offering 7.75% interest to senior citizens.
Also Read: Disadvantages of Fixed Deposit: 5 reasons not to invest
ICICI Bank RD
ICICI Bank is also offering 7.5% interest on 5-year RD to senior citizens. Others can get 6.9% interest on a 5-year RD. A monthly RD of Rs 5000 by a senior citizen in this bank will grow to approx Rs 3.6 lakh in 5 years.
(Disclaimer: The above content is for information purposes only. Interest rates mentioned have been taken from the respective bank websites on May 20, 2023. Please confirm the latest rates with the bank as they are subject to change)