Recurring Deposit (RD) can prove to be a great scheme for people who cannot invest lump sum money. In this scheme, you can create a big fund by investing some money monthly. The best thing about this scheme is that you not only get a fixed return but your money is also safe. We are telling you which bank is giving how much interest on RD at this time.
First of all understand what is RD?
Recurring Deposit or RD can help you save big. You can use it like a piggy bank. Meaning you keep putting a certain amount in it every month when the salary comes and on its maturity you will have a big amount in your hand. Its maturity period is usually between 6 months to 10 years.
How much can you start investing with?
You can invest a minimum of Rs 100 per month in this RD scheme. You can deposit any amount more than this in multiples of 10. There is no limit on the maximum deposit amount.
Where can I open RD account?
RD is a type of small savings scheme. Any person can open its account in any bank. These accounts can be opened in all private and government banks.
Which bank is giving how much interest
| Bank | Interest on 1 year RD | Interest on RD for 3 years | Interest on RD for 5 years |
| indusind bank | 8.00 | 7.50 | 7.25 |
| Central Bank Of India | 7.00 | 6.20 | 6.20 |
| Bandhan Bank | 6.75 | 6.75 | 6.50 |
| bank of india | 6.65 | 6.50 | 6.50 |
| Yes Bank | 6.50 | 6.75 | – |
| post office | 5.80 | 5.80 | 5.80 |
| ICICI | 5.80 | 6.00 | 6.00 |
| SBI | 5.50% | 5.70% | 5.70% |
| Punjab National Bank | 5.20% | 5.30% | 5.30% |
Interest income from RD will also have to be paid. If the interest income from Recurring Deposit (RD) is up to Rs 40000 (Rs 50000 in case of senior citizens), then you do not have to pay any tax on it. 10% TDS is deducted on income above this. Bank TDS is not deducted if your annual interest income from RD is more than Rs 40,000 but total annual income (including interest income) is not to the extent that it is taxed. For this, senior citizens have to submit Form 15H to the bank and Form 15G to others.
Form 15G or Form 15H are self-declared forms. In this, you state that your income is outside the tax limit. Whoever fills this form will be kept out of the tax net.
