Most banks offer an additional rate of 0.25%-0.75% for senior citizens. The interest rate for senior citizens RD accounts is slightly higher than the regular accounts. In Indian banks, the interest rate lies in the range of 3.5-7.5% for different time periods. The interest rate on RD varies from bank to bank, as with any other saving account. It doesn’t change, unlike some investment products, making it an attractive savings scheme.
Determining the amount one can earn through investing in an RD is easy as the interest rate remains the same throughout the tenure of the RD. Once the RD deposit matures, the lump sum and interest are paid back.
With an RD saving account, people can save a small amount regularly with monthly deposits for a predetermined period and earn interest on those deposits. Recurring Deposits (RD) are a savings option that helps you to save for the future. Which are the right funds to help you achieve your goal?
