5 Banks Offering Up To 8% Interest Rates On Recurring Deposits

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Curated By: Business Desk

Last Updated: September 08, 2023, 17:05 IST

 City Union Bank gives 8% interest on RDs to senior citizens.

City Union Bank gives 8% interest on RDs to senior citizens.

Investment in RDs is taxable. Both the money invested and the interest earned are taxed as per the defined slabs.

Recurring deposits (RDs) are one of the ways to invest money in the bank and earn returns. Unlike fixed deposits (FDs), recurring deposits allow monthly investment, building the corpus for short-term needs. For those who can’t afford to invest a large amount of money in FDs for a long period of time, RDs are the best way to invest your money. However, make sure that you have the required funds to invest every month.

Additionally, it needs to be kept in mind that investment in RDs is taxable. Both the money invested and the interest earned are taxed as per the defined slabs. In a bid to aid the investors, a few banks have raised interest rates on RDs for 5-year tenor. The development came after six consecutive rate hikes by the Reserve Bank of India (RBI) in FY23. Here are five banks offering up to 8 per cent interest rates on RDs for a 5-year tenor.

Bandhan Bank

Bandhan Bank offers between 6.50 to 7.50 per cent payable interest rates on RDs, depending on the maturity of the plan. On the other hand, senior citizens would receive an interest of up to 8 per cent. The bank is flexible and allows the investors to choose instalment amounts in multiples of Rs 1 starting at Rs 100.

Indian Overseas Bank

Indian Overseas Bank at present is offering payable interest ranging from 5.75 per cent to 7.25 per cent to its general customers depending on the tenure chosen by them. senior citizens get an interest of 6.25 per cent to 7.75 per cent interest.

Deutsche Bank

Deutsche Bank, in recurring deposits, has decided on a 6 per cent to 7.50 per cent payable interest rate for its general customers. It is offering interest ranging from 6.50 per cent to 7.75 per cent to senior citizen customers.

City Union Bank

The interest for City Union Bank RDs ranges from 7.75 per cent for recurring deposit tenures of 1 year to 5 years. It is 7.50 per cent per annum for deposits with a tenure of 5 years to 10 years. Additionally, for senior citizens, the interest is 8 per cent per annum for maturity between 1 year to 5 years.

DHFL Bank

DHFL Bank is offering an interest of 7.75 per cent to its general customers in RDs whereas, for senior citizens, the interest rate has been fixed at 7.75 per cent interest.

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