Latest recurring deposit interest rates in India – Jul-2013

Latest recurring deposit interest rates in India – Jul-2013Latest recurring deposit interest rates in India – Jul-2013

In the last one month, Karnataka Bank, Bank of Baroda and Indian bank has reduced recurring deposit rates for some of the recurring deposit tenures.

Investment in recurring deposits in India is continued to be one of the best choice for several investors. Banks are still betting good business from these recurring deposits.

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 RD account instead of compromising and depositing with their current bank.

Latest recurring deposit interest rates in India

Latest recurring deposit interest rates in India – Jul-2013-Chart

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Latest recurring deposit interest rates in India

Suresh KP


  • Saradhi

    Hi Suresh, Thanks for your insight. How is the interest compounded in RD, is it monthly compounding or quarterly or annually?

    • Saradhi, Interest is computed from the date of your RD investment, but compounded annually. I heard few banks are trying to do it quarterly but I could not trace anywhere.

  • Amit

    Hello Suresh ji, received your reply on email, here is my querry :-

    I am newly married and a newbie into investment world.

    Total  salary cash (including me and mine wife's salary) inflow per month = Rs 48000

    monthly expenditure = Rs 20,000

    we plan to purchase a flat/land after 2 years. till then i need your help in accumulating some wealth and also for our future needs viz child birth, medical emergencies.

    i've heard about Mutual funds,Insurance policies & Recurring deposits.

    kindly advice on the same how much and where should we invest our savings.

    Thank you.

  • Praveen

    Suresh..  Can you add AP State Co-operative Bank to this list… They are provide better interest rates than other banks.   — GOLDEN JUBILEE RECURRING DEPOSIT SCHEME

    Let me know if this RD is good or not. 

    • Praveen, I am including only major banks. Regd the FD scheme specified by you, this is not different from any other FD. This FD is for 350 days (50 weeks) which is less than 1 year. If you look at small private banks, they are offering rates upto 10.5%. However these small pvt banks or co-operate banks are little risky. Stay invested in large pvt banks or PSU’s which anyway offering upto 9%+

      • Praveen


        Co-operative banks are State Banks, what risk would this involve.

        I am planning to opening a RD account from next month. Is there a possiblity of Interest rates Increase in coming months. So that i can wait for 1 more month and open the account, so that i will get the more interest. 

        I am a regular reader of your blogs and i am loving it.  Your suggestions are very usefull. Keep Going!!!

        • Praveen, though cooperative banks are formed as per cooperative societies act, they are governed by RBI. Their motive is “no profit no loss”. There are several articles which indicate that such banks run with political interest. They offer highest interest rates like any other small bank. Hence in my opinion, there are nationalized or large private banks which offer similar interest rates or little lower. 

  • Vivek

    Hello Suresh ji, By investing in recurring deposits what is the "effective" pre-tax and post-tax interest earning that one can hope to generate short term / long term. Thank you Sir, Vivek

    • Vivek, It depends on which tax slab you are. If you are in 10% tax slab, only 10% tax would be applicable. So if you open a FD for 9% interest rate, out of this 10% would get reduced and your effective yield would be 8.1% p.a.

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