RD rate of interest: Last week, private sector lender ICICI Bank revised its interest rates

A recurring deposit or RD account enables the investor to contribute a fixed amount of money at regular intervals, and generates 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. RD interest rates are subject to change from time to time. Last week, private sector lender ICICI Bank revised its RD interest rates.

(Also read: Latest fixed deposit interest rates paid by banks)

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

State Bank of India

SBI offers the following interest rates on RDs 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

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

HDFC Bank

HDFC Bank offers the following interest rates on RDs with effect from March 6, 2019, according to the lender's website - hdfcbank.com:

Tenors General public (% p.a.) Senior citizens (% p.a.) 6 months 6.25 6.75 9 months 6.75 7.25 12 months 7.30 7.80 15 months 7.30 7.80 24 months 7.30 7.80 27 months 7.40 7.90 36 months 7.40 7.90 39 months 7.25 7.75 48 months 7.25 7.75 60 months 7.25 7.75 90 months 6.50 7.00 120 months 6.50 7.00

ICICI Bank

ICICI Bank offers the following interest rates on RDs with effect from June 17, 2019 according to the lender's website - icicibank.com:

Tenors General public (% p.a.) Senior citizens (% p.a.) 6 months 6 6.5 9 months 6.5 7 12 months 6.9 7.4 15 months 7 7.5 18 months 7 7.5 21 months 7 7.5 24 months 7 7.5 27 months 7.3 7.8 30 months 7.3 7.8 33 months 7.3 7.8 36 months 7.3 7.8 Above 3 years up to 5 years 7.25 7.75 Above 5 years up to 10 years 7 7.5

However, interest rates offered by small finance banks are often higher compared to commercial banks, and other financial institutions such as designated post offices.