What is recurring deposit interest rate?
The RD interest rate is the return I earn on my recurring deposit, and it usually ranges between 7% to 9% per annum, depending on the bank and tenure.
Banks usually calculate RD maturity value using a simple formula:
M = R[(1+i)^n – 1] / [1 – (1+i)^(-1/3)]
Where,
- M is the maturity value you will get
- R is the monthly amount you deposit
- n is the number of quarters
- i is the interest rate divided by 400
This will help you know exactly how much your savings will grow over time.
However, when I have to check the RD interest rate, I prefer using an online RD calculator.
Here are 2 banks along with the RD interest rate they offer:
| Banks | RD Interest Rate | Tenure |
|---|---|---|
| Suryoday SF Bank | 8.40% | 5 Years |
| Shivalik SF Bank | 8.10% | 1 Year 6 Months |