In today's time, saving money is the need of the hour. It is very important to save for children's education and marriage. Saving is like a piggy bank, especially in old age.

For a middle-class family, just as FD and Provident Fund are like a treasure of Kuber, similarly RD Account is no less than a treasure.

In such a situation, if you are also going to open RD Account and want to know how much interest different banks are paying, then you must read this article.

What is RD Account?

First of all, let us know what RD Account is. RD stands for Recurring Deposit. RD account is an account in which a person can deposit a fixed amount every month for a fixed period and can get the amount along with interest at the end of the time. You can deposit money every month in this.

Benefits of investing in RD

After knowing about RD accounts, let us know what the benefits of investing in RD. are

  • Depositing a few rupees every month in RD inculcates the habit of saving.
  • Investing in RD is not considered risky.
  • You can deposit a minimum of Rs 100 in RD. However, the amount may vary from bank to bank.
  • The interest received in this is almost equal to FD, so it is also considered the best.
  • You can also take a loan to buy a house, car, etc. by pledging the RD amount. However, the loan can be around 80-90 per cent of the deposit amount.
  • Many banks provide the facility for premature withdrawal of money.

How to open an RD account?

Opening an RD account is very easy. For this, you can easily open it by going to any bank. Get complete information about RD after visiting the bank. After getting the information you will be given a form which you will have to fill and submit to the bank.

While opening the account, you can select how much money you want to deposit every month and for how many years. If you have an account with a bank, then try to open an RD account in the same bank itself, so that the RD amount gets auto-debited every month and goes into the RD account.

For your information, let us tell you that an RD account can also be opened online. This facility is available on the mobile banking app.

Interest received in different banks

The interest rate offered by banks on RD depends on different categories. The interest rate offered by banks on RD ranges from around 2.70% to 7.50%.

SBI bank interest rate

  • General Interest Rate- 5.10%, Senior Citizen-5.60% (for 1-2 years)
  • General Interest Rate- 5.30%, Senior Citizen-5.80% (for 1-3 years)
  • General Interest Rate - 5.40%, Senior Citizen - 6.20% (for 5-10 years)

ICICI Bank's interest rate

  • General Interest Rate- 5.45%, Senior Citizen-5.95% (for 3-5 years)
  • General Interest Rate - 5.60%, Senior Citizen - 6.35% (for 5-10 years)

HDFC bank interest rate

  • General Interest Rate- 5.35%, Senior Citizen-5.85% (for 48 months)
  • General Interest Rate - 5.50 %, Senior Citizen - 6.00 % (for 90 months)

Central Bank interest rate

  • General Interest Rate - 5.00 %, Senior Citizen - 5.50 % (for 3-4 years)
  • General Interest Rate - 5.00 %, Senior Citizen - 5.50 % (for 5 to 10 years months)

Note: These interest rate figures are taken from the Market Based Grove website.