Which Bank in India is providing the Best FD and RD Return Rates?| North Loop Official Blog
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North Loop
12 Oct 2020

Which Bank in India is providing the Best FD and RD Return Rates?

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Introduction -

Bank deposits are one of the most common and safest ways of investment that provide a fixed source of income. In this article, we will look at the top banks providing the best FD RD rates in India. But before we begin, let us understand the difference between RD vs FD -

RD vs FD differences -

Purpose - Both RD or FD allows you to earn guaranteed returns on investments. However, for FDs, you have to invest money for a fixed tenure, whereas, for recurring deposits, you have to deposit a pre-determined amount every month in your RD account.

Interest Rate - Both FD interest rates and RD interest rates varies from one bank to another and depends on the deposit tenure as well as the scheme chosen. Since recurring deposits have several plans, the RD interest rates also change accordingly. Currently, for one year, the FD interest rates are between 5.10% and 6.95%, while the RD interest rates are between 6.40% and 7%. However, the interest earned on the former is higher for the same tenure as the entire lump sum invested collects interest for one year. For recurring deposits, the first instalment makes interest for 12 months, the second for 11 months and so on.

Tenure - The tenure of a recurring deposit ranges from six months to ten years while that for a fixed deposit can be from seven days and go up to ten years.

Minimum investment - While fixed deposits do not have a minimum investment requirement, some banks specify a maximum prescribed limit of Rs.1.5 lakh. Recurring deposits usually have an investment limit that varies with different banks and ranges between Rs.1000 and Rs.15 lakhs.

Liquidity - For the foreclosure of RD or FD, a penalty is charged by banks that is usually 2% of the principal amount. That is because both these bank deposit investment options have a specified tenure and a fixed maturity date.

Tax Deducted at Source (TDS) - TDS is applicable on fixed deposits at 10% for interest earned greater than Rs.10000 in a financial year. Recurring deposits do not get subjected to any TDS.

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Which is the best FD RD option in India currently?

If you have a cautious approach to investing and are appreciably risk-averse, investment in bank deposits is a good option for you. But which is the best FD RD that you can invest in the country? Let us look at some of the best banks for RD as well as FD and the interest rates they offer.

Best FD RD rates in India 2020 -

   
Name   
   
FD interest rate   
   
North Loop   
   
7.50%   
   
IndusInd Bank   
   
7.00%   
   
DCB Bank   
   
6.50%   
   
Standard Chartered Bank   
   
6.30%   
   
Kotak Mahindra Bank   
   
4.75%   
   
YES Bank   
   
6.75%   
   
ICICI Bank   
   
5.00%   
   
HDFC Bank   
   
5.10%   
   
SBI   
   
4.90%   
   
RBL Bank   
   
6.85%   


At North Loop, we offer high-interest rate fixed deposits with safe, secure and guaranteed returns. You can sign up on our App within a matter of minutes and enjoy all features of a digital banking and investment platform.
   
Bank name   
   
RD interest rate   
   
Yes Bank   
   
7.25%   
   
IndusInd Bank   
   
7.25%   
   
DCB Bank   
   
7.00%   
   
Standard   Chartered Bank   
   
6.90%   
   
HDFC Bank   
   
6.45%   
   
Axis Bank   
   
6.60%   
   
State Bank of   India   
   
6.40%   
   
Canara Bank   
   
6.50%   


We have listed some of the best banks for RD and FD in India. However, most of them have a tedious investment application process, unhelpful customer support system and a negligible online presence. Moreover, given the prevailing health situation around the country, it is not advisable to visit their crowded bank branches. Keeping your safety in mind, at North Loop, we offer a 100% digital investment application process. You can not only enjoy an industry-high rate of 7.5% on our fixed deposits but also start investing from the comfort and safety of your home.

Conclusion -

Before choosing the best bank for RD or FD, you should assess your availability and need for funds and choose an investment option that best fits your needs. If you have a lump sum amount and want to generate high earnings at low risks, you can opt for fixed deposits. To start investing, you can sign up with North Loop here.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.