3 recurring deposits of 2 years promising over 8% returns to senior citizens
Premium- Recurring deposits (RDs), which give a fixed rate of return and also let investors make deposits on a monthly basis similar to mutual fund SIPs
Recurring deposits (RDs), which give a fixed rate of return and also let investors make deposits on a monthly basis similar to mutual fund SIPs, are among the most popular choices for debt investors when it comes to saving money every month for their financial objectives. Investors can pick the tenure based on their needs and the terms of these accounts typically run from six months to ten years. At the time of opening an RD account, the applicable interest rate remains fixed throughout the chosen tenure and the maturity amount that includes both principal amount and interest earned can be taken out at the end of the tenure. As a result, for regular income investors who want to save each month rather than depositing a lump sum like fixed deposits, RDs offer the chance to accumulate savings for a variety of personal financial objectives. Here are the banks that are providing over 8% returns on recurring deposits maturing in 2 years along with DICGC cover benefits to anyone seeking returns that outpace inflation during a time of rising interest rates, notably elderly citizens.
Jana Small Finance Bank
The recurring deposit interest rates of Jana Small Finance Bank are in effect as of June 15, 2022. The tenor of a recurring deposit should be at least 6 months and no more than 120 months. A minimum deposit of Rs. 100 is required to create an RD account with Jana Small Finance Bank, and subsequent installments must be multiples of Rs. 100. For RDs that mature in two years, the bank is giving elderly citizens an interest rate of 8.05%, which is significantly higher than the current retail inflation rate of 6.71%. If the recurring deposit is prematurely withdrawn, a 0.5% penalty will be added to the effective interest rate for the period that the deposit has been maintained with the bank by the account holder.
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Utkarsh Small Finance Bank
Recurring deposit interest rates of Utkarsh Small Finance Bank are in effect as of August 12, 2022. The minimum tenor of the recurring deposit permitted would be six months and the maximum would be ten years in order to establish an RD account with the bank. Elderly individuals can receive an interest rate of 8% on recurring deposits maturing in more than 21 months but less than 24 months from Utkarsh Small Finance Bank. The bank has mentioned on its website that “Penalty on premature withdrawal is 1 % (not applicable for closure within 7 days) i.e. 1 % less than the card rate as on the date of deposit, for the period for which the deposit has remained with the Bank or 1% less than the contracted rate, whichever is lower."
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North East Small Finance Bank
Recurring deposit interest rates of North East Small Finance Bank are in effect as of April 1, 2022. The bank is now guaranteeing senior citizens an interest rate of 8% on recurring deposits maturing in two years, which is not only a return that beats inflation but also a return that is significantly higher than small savings schemes.
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