People adopt the method of investment to make the future better. Many schemes are also brought by banks for investment. Under this, there is an RD scheme of banks, in which you can get good profits by investing. The main feature of RD is that you can save by earning interest along with small contributions at regular intervals.
The maturity amount for a recurring deposit is the sum of the principal and interest generated over the investment period. Interest is compounded on a quarterly basis. According to the HDFC Bank website, the recurring deposit is calculated using the compound interest formula. Savings have to be deposited in the account every month. Interest is paid on your savings on a quarterly compounding basis.
Here is a list of interest rates on RDs from some of the leading banks, so you can assess which one might be better for you to invest in.
ICICI Bank RD Interest Rate
The maturity period of this bank can be opened from 6 months to 10 years. The interest rate for ordinary people ranges from 3.50 to 5.60. Whereas for senior citizens, the interest rate is given from 4.0 to 6.35.
SBI RD Interest Rate
The interest rate on RD offered by SBI Bank to RD account holders is applicable on fixed deposits for public and senior citizens. Whose deposit period is minimum – 12 months, maximum – 120 months. In this, the minimum deposit amount that can be deposited is Rs.100 per month in multiples of 10. The interest rate on this is 2.90 for minimum 7 to 45 days and 5.50 for maximum 5 to 10 years. Whereas for senior citizens it is given from 3.40 to 6.30.
HDFC Interest Rate
The interest rate on this is 3.50 percent for the public for 6 months. The same 5.60 percent interest is given on the maximum 120 months. On the other hand, senior citizens are given interest from 4 percent to 6.35 percent.
Penalty for non-payment of monthly installments
SBI customers will have to pay Rs 1.50 per Rs 100 every month for an account with a maturity period of 5 years. Rs.2.00 per Rs.100 per month is for accounts with maturity period of more than 5 years. In case of SBI RD, if an RD customer misses six consecutive installments, the account will be closed early and the balance amount will be paid to the account holder. According to the ICICI Bank website, a penalty of Rs 12 per Rs 1000 is levied on monthly interest for all delayed instalments.