A Recurring Deposit (RD) is a popular investment option in India, allowing individuals to deposit a fixed amount monthly and earn interest over a predetermined tenure. Here's a comparison of RD interest rates offered by various banks as of 2024:

| Bank | General Interest Rates | Senior Citizen Interest Rates |
|--------------------------|------------------------|-------------------------------|
| State Bank of India | 4.40% – 5.50% | 4.90% – 6.20% |
| ICICI Bank | 3.50% – 5.50% | 4.00% – 6.30% |
| HDFC Bank | 4.40% – 5.50% | 4.90% – 6.25% |
| Axis Bank | 4.40% – 5.75% | 4.65% – 6.50% |
| Punjab National Bank | 4.40% – 5.30% | 4.90% – 6.05% |
| IDBI Bank | 7.00% – 7.15% | 7.50% – 7.65% |
| Indian Bank | 6.25% – 6.30% | 6.75% – 6.80% |
| Yes Bank | 5.00% – 6.50% | 5.50% – 7.25% |
| Bank of India | 4.30% – 5.05% | 4.80% – 5.50% |
| Central Bank of India | 4.20% – 5.00% | 4.20% – 5.00% |
| UCO Bank | 4.70% – 5.00% | 4.90% – 5.00% |
| RBL Bank | 4.50% – 6.30% | 5.00% – 6.80% |
| Post Office RD | 6.20% | 6.20% |

Note: Interest rates are subject to change and may vary based on the deposit tenure and amount. Senior citizens typically receive an additional 0.50% interest over the general rates.

Key Features of Recurring Deposits:

• Flexible Deposits: Start with amounts as low as10, making it accessible for all income groups.

• Tenure Options: Choose a tenure ranging from 6 months to 10 years, depending on your financial goals.

• Interest Rates: Comparable to Fixed Deposits, with quarterly compounding to maximize returns.

• Senior Citizen Benefits: Higher interest rates, usually an additional 0.50%, are offered to senior citizens.

• Loan Facility: Avail loans against your RD, typically up to 80-90% of the deposit value.

• Premature Withdrawal: Allowed with a penalty, providing liquidity in emergencies.

Calculating RD Maturity:

The maturity amount can be calculated using the formula:

[ M = R \times \left( \frac{(1 + i)^n - 1}{1 - (1 + i)^{-\frac{1}{3}}} \right) ]

Where:

• M = Maturity amount

• R = Monthly installment

• i = Quarterly interest rate

• n = Number of quarters

For ease, you can use online RD calculators to determine the maturity value based on your monthly deposit, interest rate, and tenure.

Tax Implications:

Interest earned on RDs is taxable. If the interest exceeds40,000 in a financial year (?50,000 for senior citizens), Tax Deducted at Source (TDS) at 10% is applicable. Submitting Form 15G/15H can help avoid TDS if your total income is below the taxable limit.

Choosing the Right RD:

When selecting an RD, consider factors like the interest rate, bank credibility, tenure flexibility, and additional benefits for senior citizens. Regularly reviewing and comparing rates across banks can help maximize your returns.

Always verify the latest interest rates and terms with the respective bank before investing, as they are subject to periodic revisions.

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