Hi All, Has anyone recently started any recurring deposit? I want to know which bank offers highest interest rate for recurring deposit. I'm looking for a tenure of 1 year, 5 years and 10 years.
hi friend, u can go with city union bank, it gives u 10 percent. and u can also go with co-operative state banks which they give 10.50 percent for one year deposits. not only with rd. and with all deposits also except savings bank account.
RD is good option for investment. Now a days, RD plus every one r opting for it since RD have some cavets. If you fail to pay any one month during tenure , the penalty will be there. Payment in RD is fixed for entire tenure and RD plus is variable payment and returns depends on ur amount. you need to check premature withdraw facility. Do the bank charge for this?. Is the interest rate difference ?. Thanks Sam
Hi Sam, Some banks charge for premature withdrawal. The interest rates for RD as well as premature withdrawal is different.
That's correct. Premature withdrawl will be charged by any company. Interest are rates also different. What I mean is, if there is no charges for premature withdrawl, interest rates are slightly low. That's why to compensate all these, RD plus is new option.
RD is fixed installment. RD+ is variable. For instance, if you plan to pay Rs1000per month in RD. You need to pay the same for the entire tenure. While in RD+, you can pay more than Rs 1000 depending on your income