Recurring deposit (RD) is a kind of term deposit that enables investors to contribute a fixed amount of money at regular intervals, and generates interest income. An RD account allows the investor to put in a fixed amount of funds at regular intervals; for instance, every month. On maturity, the depositor is paid a lump-sum amount which includes the periodic investments and the interest income earned on them. RDs are offered by private and public sector banks, small finance banks (SFBs), and post offices.
Small finance banks focus on financial inclusion by provision of savings instruments, supply of credit to small businesses, small farmers, micro and small industries and other unorganised sector entities.
Here is a comparison of RD interest rates paid by small finance banks:
AU Small Finance Bank
The bank offers the following interest rates on RD accounts according to its website, aubank.in:
| Period | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| 3 months | 6.75% | 7.25% |
| 6 months | 6.90% | 7.40% |
| 9 months to 12 months | 7.01% | 7.51% |
| 15 months to 18 months | 7.63% | 8.13% |
| 21 months to 24 months | 7.87% | 8.37% |
| 27 months to 36 months | 8.10% | 8.60% |
| 37 months to 45 months | 7.53% | 8.03% |
| 46 months to 60 months | 7.77% | 8.27% |
| 61 months to 120 months | 7.30% | 7.80% |
Jana Small Finance Bank
The bank offers the following interest rates on RD accounts according to its website, janabank.com:
| Period | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| > 1 month - 6 months | 6.00% | 6.60% |
| > 6 months - 12 months | 8.50% | 9.10% |
| > 12 months - 24 months | 8.50% | 9.10% |
| > 24 months - < 36 months | 8.50% | 9.10% |
| = 36 months | 9.00% | 9.60% |
| > 36 months - 60 months | 8.50% | 9.10% |
| > 60 months - 120 months | 7.00% | 7.60% |
Suryoday Small Finance Bank
The bank offers the following interest rates on RD accounts according to its website, surodaybank.com:
| Period | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| 6 months | 7.50% | 8.00% |
| 9 months | 7.75% | 8.25% |
| 12 months | 8.50% | 9.00% |
| 15 months | 8.50% | 9.00% |
| 18 months | 8.50% | 9.00% |
| 21 months | 8.50% | 9.00% |
| 24 months | 8.50% | 9.00% |
| 27 months | 8.75% | 9.25% |
| 30 months | 8.75% | 9.25% |
| 33 months | 8.75% | 9.25% |
| 36 months | 8.75% | 9.25% |
| Above 3 years to less than 5 years | 8.00% | 8.50% |
| 5 years | 8.25% | 8.75% |
| Above 5 years to 10 years | 7.25% | 7.75% |
ESAF Small Finance Bank
The bank offers the following interest rates on RD accounts according to its website, esafbank.com: