Small finance banks provide as much as 7.5% rate of interest on recurring deposit

Recurring deposits with small finance banks will be engaging contemplating the rates of interest and their phrases and circumstances.

Most small finance banks provide a recurring deposit (RD) of a minimal of six months and a most of 10 years. The depositor can begin with as little as ₹100. However, a majority additionally need the depositor to first have a financial savings account with the financial institution earlier than opening an RD.

A recurring deposit is sort of a fastened deposit (FD). The distinction is that a person can hold depositing cash within the RD account each month. Think of it as a scientific funding plan or SIP for FDs.

The rates of interest rely on the tenure of the RD – there may very well be the next rate of interest for a three-year product than a one-year RD.

Besides banks, even India Post affords RD beneath its Small Savings Schemes. The highest RD rate of interest from India Post, State Bank of India, ICICI Bank, and HDFC Bank is 5.4% to five.8%.

Small finance banks provide the very best rate of interest between 6.25% and seven.5%. According to its web site, AU Small Finance Bank affords 6.25% curiosity on RD of 25 to 36 months and 61 to 120 months.

North East Small Finance Bank 7.5% charges on its two-year FD, in keeping with its web site. Utkarsh Small Finance Bank provide 7% on RD of 24 to 36 months.

Most different small finance banks have the very best RD at 6.5% to six.75%. These embody Fincare Small Finance Bank, Equitas Small Finance Bank, ESAF Small Finance Bank, Shivalik Small Finance Bank, Suryoday Small Finance Bank, Ujjivan Small Finance Bank and Jana Small Finance Bank.

The majority of small finance banks provide their highest curiosity for RD of lower than 5 years. Equitas Small Finance Bank is an exception that gives its highest charge (6.5%) for RDs of 90 months and above.

(Do you could have private finance queries? Send them to mintmoney@livemint.com and get them answered by trade specialists)

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