Today, we will be discussing about the best options for opening a recurring deposit account in 2015. Investment schemes and financial planning are the major concerns for many individuals as they look for the safest and trustworthy mode of investment.
Fixed Deposits are considered the best option for any sort of investment as it guarantees high returns at the end of the tenure. The basic problem though with this scheme is that you need to deposit a lump sum amount right from the start and leave it there for 1 year or more to get the benefits. Not everyone has such a lump sum amount at their hands to invest in Fixed Deposit schemes.
To counter this problem, Reserve Bank of India has launched Recurring Deposit scheme that come quite handy and is slowly gaining popularity among the Indians for safer, reliable and smart investments.
So, what is Recurring Deposit (RD)?
Recurring Deposit is actually a minimized version of Fixed Deposit account where the bank debits a fix amount (predefined by you) monthly from your account for a specific period of time as you decide until it adheres to the bank guidelines. Similar to the Fixed Deposit scheme, the maturity date, monthly installment and rate of interest is pre-set at the time of opening a recurring deposit account and couldn’t be changed half-way through. Most often, the depositors can enjoy the interest rate equivalent to Fixed Deposits depending on the banks they apply to.
Recurring Deposits are best for those who earn a fixed monthly income and are looking for a reliable investment plan where they can save periodically to achieve some future goals such as buying a car, wedding, or any other major event of life.
Best Banks for Recurring Deposit Accounts:
So, now that you have understood the concept of Recurring Deposit account, let’s check out the top 5 options for opening a Recurring Deposit account.
State Bank of India (SBI) offers the best banking service in India whether in terms of technology, branch networks or customer support. For a Recurring Deposit account too, it is one of the top choices as it is one of the most reputed banking brands in India as well as it is a Government of India owned bank.
SBI offers the maximum interest rate of 8.50% equivalent to a standard Fixed Deposit scheme for the deposit period of 12 months up to 59 months. The most important factor that places SBI on top of our list in spite of lower interest rate is because of the fact that the individual can choose a minimum monthly deposit of Rs. 100 and in multiples of 10 thereafter to avail the Recurring Deposit advantage from the bank.
Check out the latest SBI RD Interest Rates.
2. HDFC Bank:
HDFC Bank makes it to the 2nd on our list of top banks for recurring deposit account. Being the 2nd largest private sector bank in India, HDFC has managed to build a highly reputed brand in India especially among the younger generation.
Opening a recurring deposit account at HDFC Bank offers many other advantages such as loan against the deposit etc. HDFC Bank offers maximum interest rate of 8.75% for its recurring deposit plan with the deposit period of 12 months to 60 months. You can open a RD account at HDFC for a minimum amount of Rs. 1000 and in multiples of 100 thereafter.
Check out the latest HDFC Bank RD Interest Rates.
3. ICICI Bank:
ICICI Bank is the largest private sector bank in India. Although, due to some controversies the bank has been thrashed with some negative publicity in the past, still ICICI bank has managed to sustain its popularity as one of the leading brands in India.
Unlike other banks, ICICI Bank offers a flexible RD scheme for its depositors with iFlexi RD plan. With iFlexi RD plan, there are no penalties on the depositors for delayed payments. You can get a maximum interest rate of 8.75% for a Recurring Deposit account at ICICI Bank with the deposit period of 15 months to 60 months under regular RD scheme while the same interest rate is applied with the deposit period of 13 months to 60 months under iFlexi RD Scheme offered by ICICI Bank. You can deposit a minimum of Rs. 500 per month and in multiples of 100 thereafter to open a RD account with ICICI Bank.
Check out the latest ICICI Bank RD Interest Rates.
4. AXIS Bank:
Another private sector bank that made it to our list is Axis Bank. Although it offers the best interest rate among the lot, we have placed it at No. 4 because of its lesser brand value in comparison to other banks listed above. Undoubtedly, it is one of the reputed brands in the banking sector and offers quality banking solutions for both personal banking and corporate banking.
AXIS Bank offers the maximum interest rate of 8.90% for a Recurring Deposit account with the deposit period of 18 months to 36 months. An individual can open a recurring deposit account with AXIS Bank for a minimum deposit of Rs. 1000 and in multiples of 500 thereafter.
Check out the latest AXIS Bank RD Interest Rates.
5. IDBI Bank:
The only other public sector bank that makes it to our list of top Recurring Deposit banks in India is IDBI Bank. Founded by the Government of India to promote industrial growth in the country, IDBI bank has gained huge popularity in both personal banking and corporate banking sections.
For a Recurring Deposit account with IDBI Bank, you can get the maximum interest rate of 8.80% for the deposit period of 12 months to 60 months. At IDBI Bank, you can open a RD account with a minimum of Rs. 100 per month.
Check out the latest IDBI Bank RD Interest Rates.
That's it. Go through each of the option above and opt for the best bank suitable to your needs in terms of deposit amount, maturity period and interest rates.