Senior citizens can earn up to 8.50% yearly interest from recurring deposits, with Yes Bank offering the highest listed rate at 8.35%, followed by Bandhan Bank at 8.25%. IndusInd Bank comes next with its highest senior-citizen rate at 8.25%. Among other banks, DBS Bank and TMB list senior-citizen rates of up to 8%, while Kotak Mahindra Bank and Federal Bank each offer up to 7.90%. Axis Bank follows with a maximum of 7.85%. Punjab National Bank, Indian Overseas Bank, and Bank of India offer the highest rates at 7.80%, with Karnataka Bank also reaching this level.
For general non-senior citizens, Yes Bank leads with rates reaching 8%, followed by IndusInd Bank at 7.99% and Bandhan Bank offering up to 7.85%. DBS Bank and TMB each offer a maximum rate of 7.50%. General depositors can earn up to 7.40% at Kotak Mahindra Bank and Federal Bank, with Karnataka Bank also listing 7.40%. SBI and IDBI Bank reach 7%, while SBI offers 6.80% for one year and 6.75% for three years.
The Post Office RD offers 6.7% annual interest, compounded quarterly, with monthly deposits starting at ₹100 in multiples of ₹10. There is no maximum deposit limit, and the first payment is made when the account is opened. Subsequent monthly payments must match this amount, with payment deadlines depending on the account's opening date.
Recurring deposit investments vary significantly based on monthly contributions and deposit periods. For a ₹5,000 monthly investment over 12 months, assuming an 8.50% annual rate, the estimated interest would be around ₹2,763 before tax, totaling approximately ₹62,763. For a ₹5,000 monthly investment over 12 months at 8%, the estimated interest would be around ₹2,600 simple interest, totaling ₹62,600 before tax. The difference between senior citizen and general rates can result in approximately ₹163 difference over 12 months for the same investment amount.
For three years, Deutsche Bank has offered the highest listed rate at 8%, while Bank of Baroda, Yes Bank, Bandhan Bank, and IndusInd Bank each show 7.25%. ICICI Bank lists 7.20%, followed by Axis Bank at 7.10%. For five years, Deutsche Bank leads with an annual rate of 7.50%, while Yes Bank, Dhanlaxmi Bank, and IndusInd Bank each list 7.25%. Some banks show lower rates for longer commitments, with Karnataka Bank listing 6.50% for five years, falling to 5.80% in 5+ years.
