Best Recurring deposit rates in India – Jan-2013

Best Recurring deposit rates in India – Jan-2013, Recurring deposit rates in India

Best Recurring deposit rates in India – Jan-2013

There are various investment options where an investor can invest a fixed amount per month. Though there are best Mutual funds SIP’s, Debt mutual funds, monthly income plan mutual funds etc. investment in recurring deposits is continued to be one of the best investment plans for several investors.

Why investors are choosing recurring deposits?

I see several investors keep enquiring about best recurring deposit rates.  Recurring deposits have become prominent due to various features.

  • Recurring deposits can be opened with any bank with a click of a button
  • These deposits can be closed at any time  and amount would credited back to our bank account within 24 hours. Some banks offer online closure facility
  • The recurring deposit can be opened with Rs 100 and recurring amount as low as Rs 100 per month. Small savings can convert into lacs of rupees over the years.
  • Since interest rates are already indicated, the returns are known well ahead of time.

Recurring deposits can make you millionaire / Crorepathi?

Yes, if you refer my article I have written 2 months back which has the top hits in my blog, recurring deposits can be make you millionaire / crorepathi. Do you know that if you invest Rs 6,100 per month, you can become crorepathi in 30 years ?

How to maximize returns from recurring deposits?

Choosing the best recurring deposit rates may not be the only option to maximize returns, but still you can gain more by following few tips.

  • Invest in recurring deposits with multiple banks instead of opening in a single bank. This way, you can make this as safe investment option.
  • Invest in banks, where interest rates are high. If you do not have bank account, try opening the bank account. It does not take any extra money for you, except that you need to maintain minimum balance of Rs 1,000. This would be good when you invest lacs of rupees and loose Rs 1,000 as minimum balance to be maintained.
  • Invest in variable recurring deposits (VRD). I have a VRD in Indian bank where in I opted to invest for Rs 1,000 minimum recurring deposit to be done every month. Whenever I have any surplus money, I would invest in this bank account and would still get benefit of highest interest rate which they have been offering for the past 2 years. The interest rates offered by them 2 years back were 9.75% whereas the current interest rates for recurring deposit / FD is 9.25%.

Best Recurring deposit rates in India for Jan 2013

Best Recurring deposit rates in India – Jan-2013; Recurring deposit rates in India

Conclusion: No doubt, these best recurring deposit rates would provide a good opportunity to multiply your money with less risk. Small savings in best bank recurring deposits would make you crorepathi.

If you enjoyed this article, share the link in Facebook/Twitter. The links are provided below.

Best recurring deposit rates in India

Article by Suresh

Suresh KP i.e. me have written 500+ articles on this blog. I love doing analysis and identifying the Best investment options.


  1. manoj says:

    Hi suresh ji I am serving in defence as 5 year of service I want to invest about 1lac money plz guide me where how and when to invest.I am interested in FD RD and mutual funds like ICICI Pru fmcg .girls sun life front line .ICICI pru flexi and SBI ultra short term plz mail me .

    • Suresh says:

      Manoj, If you want to invest lumpsum of Rs 1 Lakh, my advice is to invest in Bank FD and Debt mutual funds. In Debt funds, you can choose SBI Dynamic bond fund or IDFC Dynamic bond fund etc. ICICI Pru FMCG is high risk investment, but I would recommend to invest through SIP (equal amount of investments every month). Birla SL Frontline is also good for SIP. ICICI Pru Flexi income plan is good ultra short term fund. Invest only if you are want to park money in short term. SBI ultra short term is just 6 months old. Please hold till we get confidence on this fund. 

  2. Praveen Jaiswal says:

    Hi Suresh,

    I want to start savings for my 1 year old son. I'm confused between Debt Mutual funds/ RDs/Child plans.

    My aim is to do disciplined savings & with guranteed returns.

    From my research i have found, Debt mutual funds give an avg return of around 8-9%.

    RD returns are also around same 8-9%

    Which option should i go for???


    • Suresh says:

      Praveen, RD’s indicate how much you would get. Debt funds are indicative numbers. You may get even more. Also these are tax efficient compared to RD. Hence you should prefer debt funds. However they come with some risk (low risk). If you want to take small risk, go for debt funds or even for balanced mutual funds. If you do not want to go for risk, invest in RD

  3. Ghosh says:


    i want to accumulate 1 lack with in 1 year by reccuring every month. it may be by bank RD or any other type ( ready to take modarate risk also). please suggest me the way……. thank you.

    • Suresh says:

      Ghosh, If you want to invest every month, but investment horizon is only 1 year, invest in Bank FD only. Open a recurring deposit for 1 year.

  4. jata says:

    If I started RD in any bank, and After completion of RD (Say 3 yrs) is the matured amount is taxable like FD in which the investor has to pay tax after maturity ?

  5. mano says:

    Already I have rd in HDFC they give 8.75% , I invest 1000 pm .now I wants to know wich bank gives maximum interest rate for the period of 3 years

  6. Mani says:


    When I checked with some of the banks, the maximum term for the RD is only 10 years. You mentioned that by investing 6100/month for 30 years @ 8.5%, we can have 1crore. which bank will offer 30 years. It will be great if you could guide me here. Thanks in advance…


  7. Sethu K says:

    Hi suresh

    am planning for open recurring deposit in icici bank per month Rs 1000, because am having account there or can I open in any other bank?

    • Suresh says:

      Sethu, If you are planning to invest in future for long time, you can check couple of banks where they are offering high rates and open a bank account. It does not harm. If you have an account with one bank, don’t just stick to that bank itself.

  8. vandhi says:


    I am currently looking for investment /Financial planning, I have completed my home loan and now i am looking for possiblity of investment. 

    Option 1: Buy 600 sqft flat in chennai for the price of 36L (have to take loan of 29L).

    EMI : 29000 per month. Have to arrange self funds 7 Lacs.

    Expectation : Rental income may be around 8-10K month. Property appreciation in future(not sure !!!)

    Option 2: Invest that same EMI amount to Some RD (and then convert FD at the end of each year).

    Please let me know which one option will be suitable.

    • Suresh says:

      Vandhi, You are asking a difficult question. We cannot say whether real estate investment is better or a RD. If you are looking for long term investment, real estate would be always a better one. With rising inflation, the RD returns would be very less. However you should check whether you are paying more to buy a flat. Can you get at lower cost than what you are investing. Since you are paying 36L for 600 Sft, I felt it is very high. Pls re-check.

  9. Arunkumar says:

    Hi Suresh,

    I know a bank called "Sreenidhi Souharda Sahakari Bank Niyamitha" in bangalore . they are saying that they will give 10.75%p.a for recurring deposit(for more than three years )..check the below link for the same…


    Can I start a RD in this bank …is it trustable?.


    Thanks and Regards,


    • Suresh says:

      Hi Arun, this is a small co-operative bank having just two branches. I cannot exactly comment on whether this bank is good or not. It would be little riskier to invest in such banks.

  10. Neha says:

    Which is the best recurring deposit or investment?

    • Suresh says:

      Neha, It depends upon the tenure. E.g. if you are investing for 1 year period, the table shows that Fedral bank, karnataka bank, kotak, yes bank etc., provides good returns.

  11. Dan - BankVibe says:

    The rupee CD is a decent investment idea right now, but you should note the major risk with these deposits. If the currency you're invested in depreciates against the dollar this will eat away at your earnings and potentially the principal. 

Leave a Reply