The Reserve Bank had announced a sudden hike in the repo rate and CRR this month. Due to this, while the debt became expensive, on the other hand, investors started getting higher returns. Earlier banks increased the interest rates of FD and now they are increasing the rate of RD.
New Delhi. After increasing the interest rates of fixed deposits (FD), now banks have started increasing the interest rates of recurring deposits. With this, the investors of these investment instruments have started getting benefits. In this episode, now the private sector giant ICICI Bank has increased the interest rates of RD.
The Reserve Bank had announced a sudden hike in the repo rate and CRR this month. Due to this, while the debt became expensive, on the other hand, investors started getting higher returns. Earlier banks increased the interest rates of FD and now they are increasing the rate of RD.
Increase by 20 basis points
ICICI Bank is giving 3.5 percent interest on 6-month RD and 4.4 percent on 9-month RD. On RD of 12-24 months, the bank has increased the interest rate by 10 basis points. It has now increased from 5 per cent to 5.1 per cent. Similarly, the interest rate on recurring deposits of 27 to 36 months has been increased by 20 basis points to 5.4%.
Higher interest to senior citizens
The interest rate on deposits from 3 years to 5 years has been increased from 5.45 per cent to 5.6 per cent. It has increased by 15 basis points. RD for 5 years to 10 years, now the bank will give 5.75 percent interest instead of 5.6 percent. Half per cent i.e. 50 basis points higher interest is being offered to senior citizens on all recurring deposits. The new rates of the bank have become effective from May 21.
Recurring deposit is a better investment option for those investors who are able to invest every month instead of lump sum. Investors can deposit a minimum of Rs 500 per month in an RD of ICICI Bank. RDs of most banks have a minimum maturity period of 6 months and a maximum of 10 years.
