Recurring deposit (RD) is the best option to start investing with small savings. Currently, despite the lowering of interest rates, small finance banks are offering up to eight per cent interest on RD. If you also want to start with a small amount, then you can take advantage of high interest by investing in them.
Where will you get the highest interest
Utkarsh Small Finance Bank is offering eight per cent interest on RD for two to three years i.e. 24 to 36 months. This is currently the highest interest found on RD. At the same time, he is offering 7.25% interest on RDs that are more than 12 months and less than 24 months.
Attractive interest here too
The interest offered on RD varies by bank and term. North East Small Finance Bank is offering 7.50% interest on two-year RDs. At the same time, Jana Small Finance Bank and Suryodaya Small Finance Bank are offering the highest interest rate on RDs of three to five years duration. Other small finance banks are offering 6.50 per cent to seven per cent interest.
RD can be easily opened
To open an RD in a bank or small finance bank, you must have a savings account in it. After this, you can open an RD account for a minimum of Rs 100. The duration of RD is minimum six months and maximum is 10 years. Like banks, most small finance banks charge up to one per cent prepayment on premature closure of RD.
How much will you get on fd
Like FDs, small finance banks are offering higher interest on FDs. Jana Small Finance Bank is paying 7.51% interest on FDs of three to five years. At the same time, Suryoday Small Finance Bank is paying 7.25 percent interest for the same period. While other small finance banks are offering interest ranging from 6.75 to 6.80 per cent.
