Nov-2014: Latest recurring deposit(RD) interest rates comparison in India

Recurring deposit interest rates in India (Apr-2013)Latest recurring deposit interest rates comparison in India (Updated 15-Nov-2014)

In the last couple of months, though some of the banks have lowered the fixed deposit interest rates, latest recurring deposit interest rates comparison in India indicate that banks are still betting good business on recurring deposits and hence not lowering the interest rates. Investment in recurring deposits in India is continued to be one of the best choice for several investors. Due to various features associate with it, these are continuously gaining momentum as investors believe these as a safe investment option. We are publishing the latest major banks recurring deposits interest rates month on month as part of creating awareness among investors to choose the best one instead of compromising and depositing with their current bank. 

Latest recurring deposit interest rates comparison in India-Nov-2014

Latest recurring deposit interest rates in India-Nov-2014-Chart

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Latest recurring deposit interest 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. sunil says:

    Your effort for developing this contents are highly appreciable.sir,
    I would like to invest in canara bank rebeco mutual fund. Kindly let me know whether you are recomomeding this Mutual fund plz.

  2. shaimin says:

    hi suresh,

    where should i invest money for bet interest i’m saving 1000 to 2500 per month also tell me about mutual fund and R.D.

  3. shaimin says:

    hi suresh,

    I read most of ur blogs so i would like to tell you,

    my age is 19 and i am saving 1000-2500/month , where shoud i invest my money to get best interest..? and also give some informtion about mutual funds and reccuring deposite….

    thanks in advance

    • Suresh KP says:

      Shaimin, Happy to hear that at your age of 19 you are planning for investments. You can open a recurring deposit in any bank where you have account. If you do not have it, you can check highest rates in the above list and open an account. Go thru the mutual fund article and get familair in next 1-2 months. Once you are familair start investing in balanced funds to start with. You can keep adding large cap, mid cap funds etc. You can create very good wealth by age of 40-45 years itself

  4. Parveen says:


    Please tell me the RD account is helpful to fetch me a personel loan in future?

  5. Pradeep says:

    Sir i want to start RD of Rs.2000 per month for 1 year to 1.6 year so what is the interest rate on that sum amount of money

  6. BALA says:

    Hi Suresh,

    I want to invest Rs.10000 in RD with the expectation of high return with in 24 Months, having account in Canara Bank, IOB, HDFC & CITI – Please advise the way to meet my requirement. thanks,


  7. ANILKUMAR.D says:

    Hai  Mr.Suresh

     I am looking for Recurring deposits Interests rates.

    I am a middle class man Monthly 1000/- saving is my idea. I don't know about recurring deposits.

    I saw the latest RD interests rates in this site. Can u please tell briefly about RD & Give me any other suggestion for me to save money.(1000/- p.m) which bank is having highest rates ?

    Thank you



  8. udit says:

    Dear sir,
    I am following your website for last1month . It is providing good knowledge to me but as you mentioned latest recurring deposit interest rates (august 2014) the information of corporation bank became wrong what will you say

  9. Jairaj Rajguru says:


    My age is 25 and I'm salaried person I can invest upto  rs 4000 per month what is the better option for me..?


    • Suresh KP says:

      Since you are new to investment, my suggestion is to invest in balanced mutual funds to start with. 1) Invest in ICICI Balanced fund and HDFC Balanced fund. Keep some amount into recurring deposits also. 2) Once you are familar on how mutual funds operate, you can invest in large cap funds and diversified mutual funds. 3) If you can take some risk, you can invest in top 5 mid cap and small cap funds which I have recommended. But note that you should hold them for 8 to 10 years to get good returns. You can keep tracking every month on how your funds are progressing.

  10. Preeti Raj says:

    dear sir,
    if i want to start saving for 6 months in rd…than which bank provide me highest interest rate.. plz help me out

  11. Ramakrishna says:


    I am 34 years old and already investing 83000/anum as premium in 3-LICs.  Now I want to invest some 20000-25000/month upto 3-5years. So, what is your suggestion to get good benefits.


    Ramakrishna D.



    • Suresh KP says:

      Invest in these mutual funds funds. 1) Large cap – HDFC Top-200 / ICICI Pru focussed blue chip fund 2) Mid-cap – HDFC Mid-cap opps fund / Franklin India smaller co’s / SBI Midcap fund 3) Balanced – You can check HDFC Prudence / ICICI Balanced fund. 


    dear Sir,
    Iam contribute of rs 7000 pm from my salary for savings purpose.
    like 5500 for mutual fund & 1500 for bank RD.
    its a right or any other better option for me.

    pls. give the suggestion….

    • Suresh KP says:

      Since you are new to investment, my suggestion is to invest in balanced mutual funds to start with. 1) Invest in ICICI Balanced fund and HDFC Balanced fund. Keep some amount into recurring deposits also. 2) Once you are familar on how mutual funds operate, you can invest in large cap funds and diversified mutual funds. 3) If you can take some risk, you can invest in top 5 mid cap and small cap funds which I have recommended. But note that you should hold them for 8 to 10 years to get good returns. You can keep tracking every month on how your funds are progressing.

      • Sarwesh kumar says:

        Hello sir, i m a salaried person age 31, i can invest max 5K per month, what investment options i may choose.




        • Suresh KP says:

          Invest in these funds. 1) Large cap – HDFC Top-200 / ICICI Pru focussed blue chip fund 2) Mid-cap – HDFC Mid-cap opps fund / Franklin India smaller co’s / SBI Midcap fund 3) Balanced – You can check HDFC Prudence / ICICI Balanced fund. 

  13. Avinash says:

    hi si, I have started investing 1500 in RD for 120 month, Could you pease advice me after 120 month the amount i will receive from bank will be taxable? if it is, then how much i have to pay.


  14. Pankaj says:

    Hello sir,

    I am planning to invest Rs.5000 per month… ..RD would be better option for me.?..what is the advantage of opening multiple RD accounts….most important…what are the risk factors to invest the money in RD.

    Plz help me out…!

    • Suresh KP says:

      Hi Pankaj, RD is for low risk appetite investors. You would get fixed interest rate. However they are safe and guaranteed income option. You can open multiple RD’s and there is no additional benefit to you. Instead of investing in one bank RD, I would prefer to invest in multiple banks just for diversification (not putting my money in single bank account) and nothing more than that.

  15. Anita says:


    Respected sir i want to invest 10,000 per month which account is benifcial to me RD or FD for good return.

  16. chirag says:

    Dear Sir, 

    I have  saving of  Rs 50000 / PM  for next  5 years,  I need suggation on the investment. I had  Insurance of >1  Core and  paying  4 lakh permimum per anuum,  I Had  FD  of  > 10 lakh,  I tried in stok but i had heavy loss  and  I do not want to have more risk , Please sugest me  suitable investment option.

    furhtetr to above to avoid tax on intreste/gain i want to do investment on my wife name she is having the PAN number.

    • Suresh KP says:

      Hi Chirag, You have not specified your age. I am assuming you are below 40. Paying Rs 4 Lakh for Rs 1 Crore insurance is high, not sure which insurance plans you are investing. My suggestion is consider taking 1 Crore term insurance which costs you Rs 30K per annum maximum. Invest balance in variety of investment options starting IPO’s, Secured NCD’s, top mutual funds,, bank FD’s etc. If you can prove that your wife earns income, then you can avoid tax upto the taxable limit permissible to her

  17. amar says:


    Taking FD every month or openning recurring account for 1 year. which is good

    • Suresh KP says:

      Taking RD would be best option. Taking Variable recurring deposit (VRD) offered by some of the banks like Indian bank would be even more good. You can deposit whatever amount you want in a month.

  18. Ganesh S says:

    I want to fix R.D rs 400, wich bank wil give me more intrust,
    am from karnataka, ples reply me

    • Suresh KP says:

      Ganesh, The list provides all banks from private and public sector. Since all banks are monitored by RBI, you may proceed any bank offering good returns. If you already have accounts in any of the bank, check the rate and take the call.

  19. V. Sasibhushan says:


    is it goodd buy a house on 85% loan or invest the same EMI amount in the bank as RD. Living in rented house

    • Suresh KP says:

      Sasi, It is nothing like if you can buy house and save rent. Here you would be paying your rent as EMI to bank. May be it is higher, but that would save rent + your property value would get appreciated.

  20. Jose says:

    Hi Sir,

    Most indian banks do offer RD of a maximum tenor of 120 months only. i want to save for 180-240 months. Any scheduled indian banks offer such a period for RD??



  21. preethi says:

    I dnt know much about stocks and investments….i want to save monthly rs 1000…in which bank it is advisable to start up with rd account

    • Suresh says:

      Hi Preeti, It depends on what bank accounts you have and whether you are willing to open new bank accounts. Check the bank account where you have savings account and check the article. If you are getting around 9% RD rate, you can go ahead and open it. If not, try to open bank account in SBI or BOI as they offer highest rates.

  22. Saraswati kumari says:


    How efficient and what amount to time we need to invest in Stock Exchange so that we get a good return .Are they more riskier than Mutual funds ?

    • Suresh says:

      I think your question is for stocks. They are riskier than mutual funds. We cannot time the marekt, best way is to invest systematically in good stocks

  23. Saraswati kumari says:


    I can save upto Rs10000 of my salary .I need to invest money .please guide me where to invest properly and with good returns ,also as i am newbie to mutual funds please explain how risy it is ?

    • Suresh says:

      Hi Saraswati, Mutual funds investments carry some risk. However if you choose good funds and invest for long term, you are sure to make good returns compared to bank FD’s. To gain confidence, you can invest in balanced funds first. ICICI Balanced fund or HDFC Balanced funds are good to start with. Once you are familair with mutual funds, you can invest in funds based on your risk appetite. 

  24. Pratik Sanghvi says:


    I am a software engineer and a newbie to this mutual funds.I can invest upto 10000 from my salary so please help me taking the descision and guide me what to do.


  25. A. Baruah says:

    Hello Suresh. Your blog is wonderful. 

    I am 25years old and recently got a job. My father is 61(senior citizen). I want to open RD of  Rs10,000 monthly for 2-3 years. Would I get higher return if I open the RD in my father's name since he is a senior citizen? Or should I open in my name? Please explain me what would be the difference and the amount.  

    thanking you in advance

    • Suresh KP says:

      Hi Baruah, You can invest in your father name. There would be two plus points. 1) Higher interest for Sr. Citizens 2) The interest would be exempted upto Rs 2.50 Lakhs as this is income tax exemption income for senior citizens. However you may need to prove that the amount belongs to your father (if required by IT team)

  26. kaarthic says:

    Hello Suresh,

    Iam a regular reader of your blog and thank you for the information posted. I need a help, iam ready to spare 15000 monthly from my salary, can you suggest a plan where i can invest and get good returns.


    • Suresh KP says:

      Kaarthic, It would depend on your risk appetite. If you are medium to high risk, invest in mutual funds (80%) + recurring deposits (20%). If you are low risk taker, invest 20% in mutual funds and 80% in recurring deposits or post office saving schemes etc. For mutual funds, you can look largecap or diversified funds like ICICI Pru focussed blue chip fund,BNPP Equity fund, UTI Opps fund and Quantum long term equity fund. You can pick any of these funds.

  27. Pawan says:

    Thanks for informative blogs.

    What is best to create wealth ppf or RD (for 15 years)? 

    • Suresh KP says:

      Pawan, Both have their own features. 1) PPF gives 8.5% (approx) tax free returns. You can also claim this amount u/s 80C. Good for retirement planning However you cannot break in between. After 5 years you can do partial withdrawal. 2) RD – you can expect 8.5% (approx) returns, but the returns are taxable. However you can break this anytime, hence liquidity is possible.

      • Pawan says:

        I guess PPF is calculated annualy and RD quarterly.So in this way RD can give more returns.

        Correct me if I am wrong.


        • Suresh KP says:

          Pawan, It depends on bank to bank. Some banks are calculating quarterly and some annually. Yes RD can give good returns, but post tax the returns would be less compared to PPF. You can look for safe investment options article on our blog (check thru search button)

  28. sandeep srivastava says:

    if we start a r.d. in any nationalise bank with any intrest rate for a fix period,is the same intrest rate is applicable for the same period or it will be changed as bank change it time ti time…?

  29. RAVI GUPTA says:


  30. manoj says:


    • Suresh says:

      Majoj, It is immaterial about the amount of FD interest, every thing is taxable. Only SB interest upto Rs 10,000 is not taxable. all banks collect PAN no. Based on PAN no, for IT dept, it is easy to find out how much interest is paid to you and how much they have deducted as TDS and how much balance you have declared in your IT return file. With TRACES coming into picture, you can view all TDS deducted by banks in single 2-3 pages document. IT Dept can always send demand notice and you need to pay 2% interest rate per month along with penalty charges. It is always best to reduce tax by tax planning, instead of ignoring tax.

  31. sunita says:

    Dear sir,

    Is there any particular monthly saving scheme and pension plans for ph  

  32. sirf says:

    Hii Suresh,

    Actually recently I opened a recurring facility in sbi of monthly 5000 but my few freinds says if you will pay continuously 3 months ok n now u want to close ur RD account , so u have to pay penalty to bank , so kindly request u to give me the better suggestions…if this not right for me than plz give me some idea… suresh I would like to request you to plz give me suggestions by phone call 9210589995 this is my personal no…..thanks

    • Suresh says:

      Hi Sam, This is very common. If you open RD or FD and want to close it before the maturity date, majority of banks impose penalty which is paying lesser interest rates compared to what they are supposed to pay. Few banks are indicating that they would not impose such penalty to their customers like SBI for Rs 1 Crore+ FD. If you have any such questions in mind, open a Variable Recurring Deposit (VRD) in Indian bank or any other bank and opt for say Rs 500 as min deposit. If you do not have money, you can deposit just Rs 500, but if you have money you can deposit any amount more than this say Rs 5,000. Hence it would not be burden and you need not pay any penalty.

  33. Sanjay Saxena says:

    Dear Suresh,

    Your posts are really excellent and provide lot of good information to a new invester like me. I need your kind advice regarding investing in FD of Shriram Transport Finance company offering 13.70% commulative returms for 5 years period.




    • Suresh says:

      Hi Sanjay, Shriram transport is good company. However investment in company FD’s are high risk. Company performance can change anytime and you may not be able to come out quickly.  Instead you can invest in Secured NCD so that your capital and returns are safe. There are couple of NCD’s which are open now. You can review and consider them. 

  34. Nimisha MP says:

    Hello Suresh,

    Is there any limits for the number of FDs, that we can open in one bank.

    I am planning to invest 10,000/m for 1 year or two,So is it possible for me to open one FD each/per month and can avail the benefit of FD for that(inshort 12 FD accounts a year)?

    • Suresh says:

      Nimisha, You can open any number of FD schemes in a bank. Why do you want to open 12 FD’s in a year. You can create a Recurring deposit and invest Rs 10,000 per month right ? In case you want to have flexibility of amount per month (say Rs 10,000 in one month and Rs 8,000 in another month etc.), you can try Variable recurring deposit in Indian bank and similar schemes in other banks.

  35. mohit says:

    Hi Suresh,Thanks for providing the valuable information to us. i have some queries, which i would like to share with monthly salary is 55k and currently i have 1 LIC policy of 17k annualy premium.recently i had open a ppf account in icici bank.what else according to you should i do for tax saving saving and investment purpose. should i go for FD or some LIC policy? my wife is also working and her monthly salary is 18k.i also want some saving from her side.should we go for long term saving or for 3-5 years saving.kindly suggest.i am confused with PPF,FD,NSC and insurance policy.



    • Suresh says:

      Hi Mohit, Whatever you have said are all “Safe” investment options, but the returns would be moderate. Among them, I personally feel to invest Bank FD and PPF. Regd insurance, pls consider term insurance policies so that you would end up in investing lIC policies where you would get 5% (approx) returns instead of 9% returns in bank FD. If you are looking for tax saving options, invest in PPF or if you can take some risk, you can invest in ELSS mutual funds. The returns could vary and would be around 8% to 11% per annum. If you can take some risk, you can invest in mutual funds like large cap funds or debt mutual funds. You can explore option of investing in HDFC Top-200 or IDFC Dynamic bond fund etc.

  36. Sanjay says:

    Hi Suresh,

    Thanks for publishing fantastic artciles as I found it very useful.

    I would like to seek your advice for my daugther future investment plan. I am an NRI settled in London and have a 4 year daughter. Unfortunately I haven't made any investments for her except an ISA account here in UK where I can save tax free money for her but there is no interest on this or say minimum interest.

    I have some earning in India in the shape of rents which I like to use for an investment pruposes. I was thinking of opening an RD account in India and would ask my tenants to deposit monthly rent directly into this account. But not sure if that's the best options and few questoin?

    i) Is this the best option you think, if not please advise what you think would be the best option?

    ii) Being an NRI could I open an RD account for my daughter where my tenants can deposit money every month?

    Thanks for your help.


    Sanjay Kumar

    • Suresh says:

      Sanjay. Thanks for the encouraging comments There are several options. You can invest in bank FD or large cap Mutual funds or diversified mutual funds. You need to open a NRE account to get some benefits for that. Yes, once you open such account, your tenants can deposit .You can check with your bank whether there is any flexi deposit or Variable deposit. This account, you can deposit a minimum amount of say Rs 5,000. But you can also deposit any amount over and above Rs 5,000 as it is variable.

  37. shushil says:

    Hi Suresh, i have an amount of Rs.10,000 to invest every month please advise me how to do so, & what do you think about Company Fixed Deposits as they offer higer interest rates but are more riskier. Thanks.

    • Suresh says:

      Shushil, They are high risk – moderate return investments. If you still feel you want to go you can apply for Mahindra FD kind of high rated company FD. Alternative, you can invest in large cap or diversified funds to get good returns by taking moderate risk. Look for HDFC Top-200, Birla SL Frontline or Franklin India Blue chip fund

  38. Saurabh says:

    Hi Suresh,

    I read all your acticles ..It is very useful.I want to invest 20K per month till 3 years .

    could you please suggest where i should invest for better return with safe option ..


    Thanks in advance…


    Saurabh s 

    • Suresh says:

      Saurabh, If you want to invest for 3 years, you can look for short term investmetn options like Bank RD or Post office TD schemes or debt mutual funds (growth option). In debt funds, you can choose SBI Dynamic bond fund or IDFC Dynamic funds etc.

  39. chandra shekhar says:

    Hi Suresh,

    Thanks for providing valuable information. I got one doubt regarding Recurring deposits. For example If I started a recurring deposit for 3 years on 9%, can a bank change their interest rate after one year? So my deposits get the latest interest rates, which are decreased or increased OR always the same 9% until 3 years?

  40. archana kamble says:

    Hi Suresh

    This is Archana,

    Just now i have open a ppf a/c with bank of india

    I would like to know abt Rd interst Rates v/s PPF a/c interst rate

    & another question is that i can invest 1k for every month for both the accounts, means individualy i don't want to invest 1k for each account

    at the same time i would like to take the interest bennefits from the both a/c by investing 1k per month,  tell me how it works by an example


    • Suresh says:

      Archana, All 3 have different features. 1) RD – Interest rates are generally low comparing to FD rates. Interest is taxable. You would not get any income tax benefit u/s if you invest here. Interest is taxable as per income tax slab. 2) PPF – Interest rates are low comparing to FD rates and inline with RD rates. You would get tax beneift u/s 80C up to Rs 1 lakh 3) Bank FD rates are generally high comparing to other two. You would not get any tax benefit if you invest here. Also maturity is taxable as per income tax slab.

  41. manjoor ahamad says:

    hi suresh

    i want to open vrd in indian bankwith 2000 per month.can i track my investment on line i.e can i go through my monthly transactions in online or which bank provides this facility

  42. Kiran says:


    my salary is 6k per month so i was checking montly investment and got rd information.

    in rd calculator when calculate for 1k for 12 months we get only 600.

    and in fd calculator when calculated for 12000 p.a we get 1086 but the interest is same,

    i wanted a monthly investment so help me in this

    • Suresh says:

      Kiran, What you are seeing is right. 1) When you invest 1K / month for 12 months you are investing only 1k for first month, 2k for second month (1st month + 2nd month = 2K). Means amounts which you are investing are earning returns. 2) If you do FD for 12K, first month you would get returns for 12K, second month also you would get for 12K. Here you are depositign 12K in advance and not 1K per month like you are doing in RD. You can proceed. 

  43. rohit kumar says:

    hi sir,

    i want to open rd.which give better maturity amount- bank or lic jivan saral plan?

    • Suresh says:

      Rohit, Bank RD and LIC Jeevan Saral are not comparable. Bank RD is where you deposit regular deposits and get around 9% interest rates per annum. LIC Jeevan Saral plan is an insurance product where you would insurance coverage and returns after specific period (approx returns of 4% to 6%)

  44. Babitha says:

    Hi Suresh

    Your blogs are very informative.

    Can you tell me more about e-gold or gold EFTs ? I would like to know where i can purchase and how it is used.

    Thanks in advance.

  45. rajan says:

    Dear sir,

    If I paying  interest for gold loan will I get any  reduction of income tax.I am saleried person what else I can do to serve the amount

  46. rajesh says:

    Hi, I am planning to invest RS. 10000/- per month, I am thinking of investing 5000/- month in an RD, 3000/- pm in NSC and 2000/- in GOLD, kindly advice in long term will these investments be beneficial.


    • Suresh says:

      Why do you want to invest in NSC every month ? You may invest in better options like mutual funds or recurring deposits where you get higher rates. Investing in RD you would get good safe returns. Investment in gold through e-gold or gold ETF’s are beneficial in long run.

  47. Deepak says:


    I have to invest( not for tax saving) 5lacs but not sure which option to opt like VRD, FD or NSC but help me in this with stats. Longer duration is not a problem. Thanks in advace.

    • Suresh says:

      Among the 3 options, FD would be better as it gives 9%+ returns (pre-tax). Also VRD is a recurring deposit and not FD. NSC returns are 8%+, post tax, they would be very less. However if you have not exhausted 80C, you can try NSC as you can claim interest income as exemption under 80C so that your returns would be higher

  48. Ajay Kumar Gupta says:

    Dear Sureshji,

    Just yesterday I came to know about your website.Really you are doing a wonderful job for all of us.I salute you for kind of charity in this way.Your all the articles/informations are precious for the public.

    I also have one of the query that I have invested in few mutual fund through SIP(Online by ICICI for 05 years. But some of them are not performing well.I want to switch over in some other funds of different comapanies.Shall it be possible to stop in midway and switchover.Please right all about swithover and method of doing the same.

    Warm Regards!

    Ajay Kumar Gupta


    • Suresh says:

      Hi Ajay, You can do two ways. 1) Stop SIP and start investing in new funds thru SIP. Analyse existing ones and exit them if they are underperformers 2) Stop SIP and start investing in new funds thru SIP. Analyse existing and switch within schemes (e.g. a MF scheme within SBI can be switched with another scheme of SBI). IF you login to your MF account you should be able to see this switch. 

  49. Prashanth says:


    Is it possible for me to invest 1 Lakh while opening RD account and monthly Rs. 5K. What would be the eligibility.
    If yes can i withdraw the interest amount every month.


    • Suresh says:

      Prashanth, No Prashant you cannot do that. However you have an option. You can open Variable recurring deposit. Means you can fix a minimum amount to be invested every month. If you have excess money in any month you can deposit. e.g. you can choose Rs 1,000 monthly RD, but after 3rd month, you have Rs 10,000, you can just deposit and enjoy the interest rate which bank indicated to you when you were opening the account. Such VRD are available in majority of banks like Indian bank etc.,

  50. Tilak says:

    Namastey sir,I have came to know from HDFC bank(my salary bank ) that TDS on Recurring Deposits is not applicable as per new Income Tax Rules.Is is true?? & if yes than do I need to file ITR even if I do not fall on any tax brackett after adding any interest & fill up any special form????

  51. Ankur Bhandari says:

    Which Banks provide the longest duration/tenure of Recurring Deposits ? Will the rate be fixed for the entire duration ? Please advise. I want something for 15 years with Fixed rate.

    • Suresh says:

      Ankur, All banks provide RD upto 10 years. If you invest now, yes the rate would be fixed now and you would get interest for 10 years based on this.

  52. Anand says:


    Can you tell the RD interest rate in CITI bank, since in table its missed.


    • Suresh says:

      Anand, Investors would fall if I tell about this rate, hence I intentionally removed it. Citi bank currently offering RD rate of 6.75% p.a.

  53. Manas says:

    Hi Suresh…. Would you please advise me, which is the best to deposit in PPF Account or to Recurring Account? Not for tax saving, from other perspective. Thanks in advance.

    • Suresh says:

      It depends. If you are in lower tax bracket, you can invest in RD, as after tax yield would be high in RD. PPF returns are tax-free, but you would get 8%+ returns only. If you are in high tax bracket, you can go for PPF provided if you want to wait for 15 years.

  54. Ravi says:

    Hi suresh,
    Thank you for all your posts.
    I have question about RD(recurring deposit) in sbi. I have NRE account and NRO acc in sbi. I am planning to open RD account and put 25000 Rs a month for 10 years. My question is when I calculate online for 60 months it gives me around 18 laks back but when I calculate for 120 monts its giving me 46 laks return by RD calculator. Is it right amount that they are showing if i put it for 10 years (120 monts) With 8.75% interest rate.
    Do u think is it right decision to put for that long period of time.
    Do u think I should put in for RD or I should put in FD.

    Thank you so much for your time Shresh.

    • Suresh says:

      Hi Ravi, The computations are correct. If you see my article on invest in bank deposits and become crorepathi, this is what I exactly said. It is the power of compounding money. But if you rae moderate risk taker, you can invest part in diversifed mutual funds or atleast debt mutual funds. Check that. Also I could not understand your question about RD and FD. FD’s are done for lumpsum amount and RD are done monthly for the period. 

  55. Pramod Kumar says:

    Hi Suresh
    Would you sugest me where to be invest in recurring ac.

  56. hema says:

    Hi Suresh,

    Can you please help me out in giving your comments on the Salary structure –  the best CTC structure and minimize the tax payed in the year.
    The new proposed structure ok or should i need to reframe the structure in order to reduce the tax.

    I already have LIC policy for 1 Lakhs and Housing Loan EMI – 34000/Month and i can show educational bills for my Son, with all these inputs can you suggest me the best possible structure


    Thank you in advance


  57. neeraj says:


    I would to known that Is it any huge difference between RD Account or Saving Account final Maturity Amount ? After I deposit 5000 for 12 months.

    • Suresh says:

      Neeraj, There would be a differnce. When you open RD account for  12 months the rates are currently around 8% to 8.5% per annum. However savings account, the maximum rate is 7% is what I know.

      • neeraj says:

        Suresh Sir,

        Actually I am confused which monthly plan is best for me. If I open RD account 5000/month for 12 months in 8% then the Maturity Amount is  62646.62, How calculates, only 2646.62 (4.41% interest/year) profit book per year ?  In FD same amount and same Interest will give 64946 (profit is 4946) but it is one time deposit plan.  Is it another option or monthly plan for gain higher profit ? 

        Please suggest me.

        • Suresh says:

          I agree your concern Neeraj. If you want to gain more, you should take medium to low risk investmet option like debt mutual funds. Try them. You can get 9% to 12% p.a. and it can increase your returns.

  58. hemamalini says:

    Thanks for the valuable information……. Can u pls post the housing loan interest rates.

  59. Suman Deb says:

    Hi Suresh,

    Thanks for your informative topics.I am a regular reader of ur blogs. I would like suggest one topic for you. I have seen for couple of reason the CRISIL Rankings of mutual fund get changed. Can you please suggest readers of ur blog why it happens …..and  how we can make smart investment in various mutual funds when these rankings get changes over a time period…


    Thnks again for your blogs….


  60. Sanket Shirodkar says:

    First of all, Thank you very much for your blog.

    I would like to know that can I extend period of RD.

    I mean if I open a RD in SBI with 2000/month of 1 year, & after maturity wants to continue with for  the next year with same deposit. Is it possible ?

    • Suresh says:

      Sanket, You cannot extend your RD period once you have started. Go for higher period and in case you want to cancel in case of any emergency, you need to pay pre-payment charges which I feel you can afford.

  61. mallika says:


          I heard about the forex trading these days.Whether it is highly risky? Please give me your opinions about this.

  62. Hiren says:

    Thanks alot!! You're awesome :)

  63. RAJESH KUMAR says:

    Respected one

    will  you guide me to investment in COMPANIES LIKE UNITECH, JP ASSOCIATES, etc.

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