HDFC Bank has revised its recurring deposit rates along with bank FD rates. This move came after the Reserve Bank of India hiked repo rates by 50 basis points to 4.90 percent in its monetary policy meet.
Note that some banks offer RD interest rates same as fixed deposit interest rates. RDs, like FDs, are safe and secure. It is, nevertheless, best suited for salaried individuals with a limited annual income.
offers interest rates between 3.75 percent to 5.75 percent on recurring deposit with tenures ranging from 6 months to 120 months.
The interest rate for 6-month tenure offered now is 3.75 percent effective from June 17, 2022. The bank offers an interest rate of 5.35 for tenure 12 Months, 15 Months and 24 Months effective from June 15, 2022.
The interest rate is 5.50 percent for a 27-month term and 5.50 percent for a 36-month term, effective June 17, 2022. With effect from June 17, 2022, the bank now provides interest rates of 5.70 percent for tenures of 39 months, 48 months, and 60 months.
According to the HDFC Bank website, “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.”
An RD requires an individual to put aside a set amount of money each month for a set period of time. The principal amount, as well as any interest received, is returned at maturity. Having to deposit money on a regular basis aid in the development of a saving habit.