Best Banks To Open A Recurring Deposit

Recurring Deposit It is a kind of Term Deposit where we can deposit a fixed amount every month into a Recurring Deposit account and earn interest at the applicable rate. It is helpful for people with regular monthly income and is similar to Fixed Deposits. Recurring Deposit (RDs) schemes gives us an opportunity to build up our savings by doing monthly deposits of fixed sum over a fixed period of time.Minimum Period of RD is 6 months and maximum is 10 years. We can avail loans against RDs as well. The rate of interest will be similar to FDs. 10 percent TDS is applicable on RDs if the holder is getting interest more than Rs.10,000/year.There are banks which are the best in terms of interest rates for RDs and benefits but they are not available in all the cities so, consider banks which are available in all cities. Here is a list of 5 top banks interest rates and benefits on Recurring Deposits Axis Bank one of the largest private-sector banks in India. For recurring deposits Axis Bank offers minimum period of 6 months to 10 years with interest rates varying from 6.75% to 6.90%, depending on the term chosen and penalty in case of delay in payment of any installment or beyond the calendar month. The RD holder shall be liable to pay a penalty at Rs. 10 per Rs. 1000 per month for the period of delay.Fraction of the month will be treated as full month for the purpose of calculating such penalty i. e. if the installment due on 30.04.2018, is paid on 02.06.2018 the delay shall be treated as one month ICICI Bank is an Indian multinational banking and financial services company which offers recurring deposits with a minimum period of 6 months and thereafter in multiples of 3 months. The maximum tenure would be 10 years with interest rates ranging from 6% up to 6.75% for normal customers, and for senior citizens the interest rates ranges from as high as 6.50% up to 7.25% and the penalty is charged on monthly interest at the rate of Rs.12 per Rs.1000. The total interest so chargeable shall be recovered from the total amount of interest payable at the time of maturity.Premature withdrawal of deposit is also subject to charges @ 0.5-1% which can be revised without further notice.ICICI Bank also has a plan called iWish for which there is no penalty for missed payments. In HDFC Bank recurring deposits offer minimum tenure of 6 months and in multiples of 3 months thereafter up to a maximum tenure of 10 years with interest rate varying from a minimum of 5.75% to a maximum of 6.75% depending on the term of your deposit. For senior citizens there is an additional interest rates of 0.50 more which is applicable. The Penal charges will be calculated on a 30/360 day basis.Interest on a Recurring Deposit will be calculated from the date the instalment is paid. The method of calculation of interest on RDs will be on Actual / Actual Quarterly Compounding. Kotak Mahindra is one of Indias leading banking and financial services organizations. For recurring deposits a tenure of minimum 1 year to maximum 10 years is applicable. The interest rates range between 6.25% to 6.80% and will be offered to the depositor based on the date and time the Bank receives the funds.Penalty in case of delay in payment of any installment amounts to penal interest @ RD interest rate plus 2% p.a or such other rate as may be specified by Bank from time to time, will be charged for the month of delay. Grace period of 5 days is provided by the bank. Syndicate Bank is one of the oldest and major commercial banks of India. For recurring deposits the bank offers a tenure of minimum of 12 months to maximum of 10 years with interest rate varying from 6.50-6.75%. Senior citizens are eligible for an additional 0.50% interest. Nominal penalty is applicableThe total penal interest is recovered from the total amount of interest payable by the Bank and shall be recovered only at the time of maturity or premature closure of the account.