RD interest rates: These banks offer up to 8.25 percent on recurring deposits

New business data points to the fact that Recurring deposits (RDs) keep be a popular savings option for market participants who prefer predictable returns and want to build a corpus through regular monthly investments. Unlike market-linked products, RDs offer relatively stable returns, making them suitable for conservative savers who want to avoid taking high risks with their money.

An RD allows an account holder to deposit a set amount every month for a predetermined tenure. The deposits earn interest at a rate decided by the bank or the Post Office, with the accumulated amount paid at maturity. Unlike a set deposit (FD), an RD does not require market participants to commit a large lump sum at the beginning.

For those looking to save regularly while earning interest on their contributions, RDs can be an option worth considering. Here is a comparison of the interest rates offered on recurring deposits by banks and the Post Office.

According to data compiled by Stable Money small finance banks are offering interest rates of up to 8.25 percent on set deposits. Suryoday Small Finance Bank offers the highest rate of 8.25 percent for five years, while Shivalik Small Finance Bank offers up to 8 percent for 24-27 months. Ujjivan Small Finance Bank offers 7.8 percent for 39-42 months, while AU Small Finance Bank offers 7.4 percent for 31-36 months. Utkarsh Small Finance Bank offers a maximum rate of 7.25 percent for deposits above 21 months to 30 months. For a one-year FD, rates range from 6 percent at Shivalik and Utkarsh to 7.25 percent at Suryoday and Ujjivan.

For one-year set deposits, Bandhan Bank offers the highest rate among the listed banks at 7.85 percent per annum. IndusInd Bank follows at 7.75 percent, while Yes Bank and Saraswat Bank offer 7.25 percent. Kotak Mahindra Bank and Karnataka Bank quote 7.10 percent for the tenure.

For three-year deposits, Deutsche Bank offers the highest listed interest rate at 8 percent. Bank of Baroda, Yes Bank, Bandhan Bank and IndusInd Bank offer 7.25 percent each. ICICI Bank offers 7.20 percent, followed by Axis Bank at 7.10 percent. SBI's three-year FD rate stands at 6.75 percent, compared with 6.80 percent for a one-year deposit.

For five-year FDs, Deutsche Bank again tops the list with an annual interest rate of 7.50 percent. Yes Bank, Dhanlaxmi Bank and IndusInd Bank offer 7.25 percent, while ICICI Bank, HDFC Bank and Axis Bank offer 7 percent.

For deposits with tenures beyond five years, HDFC Bank, Axis Bank, Yes Bank and IndusInd Bank offer 7 percent per annum. ICICI Bank offers 6.90 percent, while Canara Bank offers 6.70 percent. SBI's rate stands at 6.50 percent for deposits in this category. Post Office RD interest rate

The Post Office Recurring Deposit (RD) at present offers an interest rate of 6.7 percent per annum, compounded quarterly. Market participants can start with a monthly deposit of Rs 100, while elevated contributions can be made in multiples of Rs 10. There is no upper limit on the amount that can be deposited.

The first instalment is paid when the RD account is opened, and subsequent monthly instalments must be of the same amount. The due date for each instalment depends on the date on which the account was opened.

Recurring deposits can help market participants build a savings corpus through regular monthly contributions without requiring a large upfront investment. While some small finance banks offer elevated interest rates, market participants should additionally consider the bank's tenure requirements and applicable deposit insurance cover before choosing an RD.