Small Finance Banks are currently offering the highest interest rates on recurring deposits. The interest rate of SFB is up to 7.5 percent while banks like India Post and SBI, HDFC Bank are offering interest only up to 5.8 percent.
Recurring deposit option for a maximum tenure of 10 years.
If you are an investor in recurring deposits, then small finance banks are offering you good interest rates. Apart from this, their term and condition is also very customer friendly. Small Finance Bank offers the option of recurring deposit for a minimum period of six months and maximum of 10 years.
Depositors can start investing with as little as Rs 100. However, for this, many banks have made it necessary to have a savings account in that bank. A recurring deposit is similar to a fixed deposit. It has to be invested every month like SIP. How much interest rate will be available, it depends on how long its tenure is. The higher the tenure, the higher the interest rate.
Interest rate of big banks and India Post up to 5.8 percent
All banks in the country including India Post offer recurring deposit facility. Talking about their interest rate, India Post, SBI, ICICI Bank, HDFC Bank offer interest rates between 5.4 percent to 5.8 percent. On the other hand, Small Finance Bank offers interest rates ranging from 6.25 percent to 7.50 percent.
Which bank is offering how much
AU Small Finance Bank offers 6.25 percent interest rate for 25-36 months while 7.50 percent interest rate for 61-120 months. North East Small Finance Bank offers an interest rate of 7.5 per cent on fixed deposits of two years. Utkarsh Small Finance Bank offers 7 per cent interest on recurring deposits of 24-36 months.
Small finance banks pay more interest
Most of the small finance banks offer higher interest rates on recurring deposits. Their interest rate ranges between 6.5 percent to 6.75 percent. This includes small finance banks like Fincare Small Finance Bank, Equitas Small Finance Bank, ESAF Small Finance Bank, Shivalik, Suryoday, Ujjivan, Jana.
The Different Story of Equitas Small Finance Bank
Most small finance banks offer higher interest rates on recurring deposits of less than five years. However, Equitas Small Finance Bank gives the highest interest rate on recurring deposits of more than 90 months.
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