Many investment options are available in India like cryptocurrencies, stocks, and bonds, but these all are quite risky options and many people do not want to invest in them for achieving their financial goals. This is one of the reasons post office and bank investments are very popular among Indians.
When it comes to safe investment options, a recurring deposit is one of the well-liked schemes. It is a fixed investment scheme that offers guaranteed returns where the investor deposits a fixed amount of money into the recurring deposit account monthly and receives interest on the accumulated corpus.
READ MORE: Top 10 banks offering highest interest rates on their fixed deposits
The recurring deposit interest rates are generally better than the fixed deposit investment; only the flexibility of monthly instalments is what makes recurring deposits stand out.
Recently, Kotak Mahindra Bank raised interest rates on term deposits, as well as on recurring deposits with effect from July 26, 2022. In July itself, along with Kotak Mahindra, Punjab National Bank also raised its interest rates. HDFC Bank raised its fixed deposit rates in June, South Indian Bank raised in April followed by Bajaj Finance Bank.
Here are the latest recurring deposit interest rates offered by popular banks
| Name of Banks | Interest rates |
| Oriental Bank of Commerce | 6.25% p.a. |
| Allahabad Bank | 6.25% - 6.45% p.a. |
| Indian Bank | 6.25% - 6.30% p.a. |
| Yes Bank | 5.00% to 6.50% |
| Indian Overseas Bank | 4.90% to 5.20% |
| UCO Bank | 4.70% to 5.00% |
| IndusInd Bank | 4.60% to 5.560% |
| Bandhan Bank | 4.50% to 5.00% |
| Axis Bank | 4.40% to 5.75% |
| Union Bank of India | 4.40% to 5.60% |
| HDFC | 4.40% to 5.50% |
| State Bank of India | 4.40% to 5.40% |
| Canara Bank | 4.40% to 5.25% |
| Punjab National Bank | 4.40% to 5.25% |
| Bank of India | 4.35% to 5.05% |
| IDBI Bank | 4.30% to 5.40% |
| Kotak Mahindra Bank | 4.30% to 5.25% |
| Bank of Baroda | 4.30% to 5.10% |
| Central Bank of India | 4.25% to 5.00% |
| ICICI | 3.50% to 5.50% |
Source: Data provided by Bankbazaar and was taken from the respective banks' websites as of 28 July 2022
The interest rates offered by banks on recurring deposits depend on some factors like the tenure you choose and which category you fall under.
Moreover, senior citizens who are aged 60 and above can apply for a recurring deposit at a higher interest rate. Normally, 0.50 percent per annum is given over and above the prevailing interest rate and the interest rates range between 4.00 percent to 7.25 percent.
