RD rate: The interest rates applicable to RD accounts are subject to change from time to time

Recurring deposit (RD) is a kind of term deposit that enables investors to contribute a fixed amount of money at regular intervals, and generates a guaranteed interest income. Unlike a fixed deposit (FD) account, in which a lump-sum amount is locked in for a defined period against a fixed return, an RD account allows the investor to put in a fixed amount of funds at regular intervals; for instance, every month. On maturity, the depositor is paid a lump-sum amount which includes the periodic investments and the interest income earned on them.

The interest rates applicable to RD accounts vary from bank to bank, and are subject to change from time to time. Earlier this week, private sector lender Axis Bank revised its interest rates on deposits on select maturities.

Here is a comparison of RD interest rates paid by State Bank of India (SBI), Punjab National Bank (PNB), Axis Bank, HDFC Bank and ICICI Bank:

State Bank of India RD interest rate

SBI offers the following interest rates on RD accounts with effect from May 9, 2019, according to the bank's website - sbi.co.in:

Tenors General public (% p.a.) Senior citizens (% p.a.) 1 year to less than 2 year 6.8 7.3 2 years to less than 3 years 6.8 7.3 3 years to less than 5 years 6.8 7.3 5 years and up to 10 years 6.85 7.35

Punjab National Bank RD interest rate

PNB offers the following interest rates on RDs with effect from May 1, 2019, according to the bank's website - pnbindia.in:

Tenors General public (% p.a.) Senior citizens (% p.a.) 180 days to 270 Days 6.35 6.85 222 days 6.6 7.1 271 days to less than 1 year 6.35 6.85 333 days 6.95 7.45 1 year 7 7.5 555 days 6.85 7.35 above 1 year & up to 3 years 6.75 7.25 above 3 year & up to 5 years 6.25 6.75 above 5 years & up to 10 years 6.25 6.75

Axis Bank RD interest rate

Axis Bank offers the following interest rates on RDs with effect from May 29, 2019, according to the bank's website - axisbank.com:

Tenors General public (% p.a.) Senior citizen (% p.a.) 6 months < 7 months 6.75 7 7 months < 8 months 6.75 7 8 months < 9 months 6.75 7 9 months < 10 months 7.1 7.35 10 months < 11 months 7.1 7.35 11 months < 1 year 7.1 7.35 1 year < 1 year 5 days 7.1 7.75 1 year 5 days < 1 year 11 days 7.1 7.75 1 year 11 days < 1 year 25 days 7.1 7.75 1 year 25 days < 13 months 7.3 7.95 13 months < 14 months 7.3 7.95 14 months < 15 months 7.3 7.95 15 months < 16 months 7.3 7.95 16 months < 17 months 7.3 7.95 17 months < 18 months 7.3 7.95 18 Months < 2 years 7.3 7.95 2 years < 30 months 7.3 7.95 30 months < 3 years 7.3 7.8 3 years < 5 years 7.25 7.75 5 years to 10 years 7 7.5

HDFC Bank RD interest rate

HDFC Bank offers the following interest rates on RD investments, according to the lender's website - hdfcbank.com:

Tenors General public (% p.a.) Senior citizens (% p.a.) Effective From 6 Months 6.25 6.75 June 06, 2018 9 Months 6.75 7.25 August 06, 2018 12 Months 7.30 7.80 November 06, 2018 15 Months 7.30 7.80 November 06, 2018 24 Months 7.30 7.80 November 06, 2018 27 Months 7.40 7.90 November 06, 2018 36 Months 7.40 7.90 November 06, 2018 39 Months 7.25 7.75 November 06, 2018 48 Months 7.25 7.75 November 06, 2018 60 Months 7.25 7.75 November 06, 2018 90 Months 6.50 7.00 November 06, 2018 120 Months 6.50 7.00 November 06, 2018

ICICI Bank RD interest rate

ICICI Bank offers the following interest rates on RD accounts with effect from March 7, 2019 according to the lender's website - icicibank.com:

Tenors General public (% p.a.) Senior citizens (% p.a.) 6 months 6.25 6.75 9 months 6.5 7 12 months 6.9 7.4 15 months 7.1 7.6 18 months 7.1 7.6 21 months 7.1 7.6 24 months 7.1 7.6 27 months 7.5 8 30 months 7.5 8 33 months 7.5 8 36 months 7.5 8 Above 3 years up to 5 years 7.25 7.75 Above 5 years up to 10 years 7 7.5

Institutions such as small finance banks and post offices also offer the facility of recurring deposit account.