Public Sector Banks

• Interest rates typically range from 5.50% to 7.25% per annum.
• Tenure options generally span 6 months to 10 years.
• Senior citizens receive 0.25% to 0.75% additional interest.
• Rates are fixed at the time of RD booking.
• Examples include SBI, PNB, and Bank of Baroda.

Private Sector Banks

• Offer rates between 6.00% and 7.75% per annum.
• Higher rates may apply for selected tenures or schemes.
• Senior citizen rates are slightly higher than regular ones.
• Banks like HDFC, ICICI, and Axis lead in this category.
• Interest is compounded quarterly and credited at maturity.

Small Finance Banks

• Provide the highest RD rates, often between 7.50% and 8.50%.
• Designed to attract retail deposits with competitive returns.
• Senior citizens may receive additional interest benefits.
• Popular banks include AU, Jana, and Ujjivan Small Finance Banks.
• Rates vary frequently based on market conditions.

Post Office Recurring Deposits

• Currently offer a fixed rate of 6.7% per annum (subject to revision).
• Tenure is fixed at 5 years with monthly deposit requirements.
• Backed by the Government of India, making it a secure option.
• No additional rate benefit for senior citizens.
• Suitable for low-risk savers seeking fixed returns.

Rate Variation Factors

• Interest rates depend on the tenure selected.
• Higher tenures generally attract better rates.
• Bank-specific policies and RBI directives influence rates.
• Compounding frequency and deposit amount do not affect the rate.
• Always confirm current rates on the official bank website.