Leave Fixed Deposit (FD) And Invest Money In Recurring Deposit (RD), Interest Will Be Available Up To 8.50 Percent

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Recurring Deposit (RD) is a type of deposit account, which allows you to make regular deposits in fixed income investment options and give guaranteed returns on your investments. 

For risk averse investors, especially salaried ones, RDs are a stable investment option as they can deposit small amounts on a monthly basis. 

The duration of RD can range from 6 months to 10 years. 

It offers security and fixed interest rate on deposits up to Rs 5 lakh from DICGC. 

Here we will tell you about 2 such institutions, where you will get more interest than FD.

how much interest rate

At present, it is difficult to get more than 5-6 per cent interest on FD in most of the big banks. 

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But a company is giving interest up to 8.5 percent on RD to citizens. 

Another bank will also give up to 8 per cent interest to the investors. 

Investing in RDs can yield higher returns as compared to savings accounts and debt mutual funds, making it a good investment option for both general and senior citizens.

Shriram Transport Finance Recurring Deposit

Shriram Transport Finance offers recurring deposits with tenures ranging from 12 to 60 months. 

All Resident Individuals and Hindu United Families can open an RD account depending on their financial goals. 

It comes with features like premature withdrawal, auto refund, auto renewal, online account opening facility, online recurring deposit calculator and minimum deposit amount of Rs 500 per installment.

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Check Interest Rates

Shriram Transport Finance Company is offering 7.03 percent interest rate on 12 months recurring deposit, 7.12 percent on 24 months, 8.18 percent on 36 months, 8.34 percent on 48 months and 8.50 percent on 60 months. 

But investors should not just look at attractive interest rates first and invest only for short term so as to reduce the interest and principal risk in case of default. 

Because 2 years back Dewan Housing Finance Limited (DHFL) defaulted, causing a lot of trouble to the investors.

North East Small Finance Bank Rd

This company is offering 4.25 percent interest rate to general citizens and 4.75 percent to senior citizens on 3 months. 

At the same time, its interest rates for 6 months are 4.50 percent and 5.00 percent. 5.50 per cent and 6.00 per cent for 9 months, 5.50 per cent and 6.00 per cent for 1 year, 7.50 per cent and 8.00 per cent for 2 years, 7.00 per cent and 7.50 per cent for 3 years, 7.00 per cent and 7.50 for 4 years, 5 There are 6.50 per cent and 7.00 per cent for the year and also 6.50 per cent and 7.00 per cent for more than 5 years to 10 years.

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great investment option

With good interest rates and DICGC deposit protection, investing in an RD from North East Small Finance Bank is a good option for investors who do not want to take any risk on the amount and interest rates depending on the maturity period they choose.

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