Returns even higher than the post office RD are being given by some banks, which are offering up to 7.35 percent interest on the tenure of 5 years.
The RD scheme is not only offered by the post office, but by many banks. Under this scheme in the post office, an interest rate of 5.80 percent is paid annually on the maturity period of 5 years. However, there are many banks here, which give returns more than the post office RD and also offer different tenures.
Bank RD gives investment option for people from 1 to 10 years. Under this scheme, a fixed amount has to be deposited every month, after the maturity of which more corpus is formed. This is also a systematic investment plan like mutual funds, which has negligible risk. However it is also essential that you have the required amount of money to invest every month. Tax exemption is not given on investing in RD scheme, that is, tax may have to be paid on excess investment.
After three consecutive repo rate hikes by the Reserve Bank of India (RBI) , many banks have increased the interest rates on RD for a period of 5 years. As per the data compiled by BankBazaar, the average interest rate of the top 10 banks is 6.9 per cent for RDs with a tenure of 5 years. Here are the top 10 banks offering interest rates on RD for a tenure of 5 years.
Jana Small Finance Bank offers 7.35 percent interest on RDs for a tenure of 5 years. This bank is offering the highest interest rate. So, if you invest Rs 5,000 in it every month for 5 years, you will get Rs 3.63 lakh at the end of the tenure.
Ujjivan Small Finance Bank offers 7.2 percent interest on RD for 5 years. If you invest Rs 5,000 every month for 5 years, you will get Rs 3.62 lakh on maturity.
7 percent interest will be available on RD
Deutsche Bank offers the highest interest rate among foreign banks, with an interest rate of 7 per cent on a 5-year RD. That is, if you invest Rs 5,000 every month for 5 years, then you will get Rs 3.60 lakh on maturity. Fincare Small Finance Bank is offering 7 percent interest on RD for 5 years. Similarly, AU Small Finance Bank is offering 6.9 percent interest on RD for 5 years.
How much interest are private sector banks paying
IndusInd Bank and Yes Bank offer the highest RD interest among private banks. They are paying 6.75 interest on RD for a tenure of 5 years. At the same time, RBL Bank is offering 6.55 percent interest on RD, IDFC First Bank 6.5 percent for a period of 5 years.
