Recurring deposit rates of interest: For the December quarter, the federal government elevated the rate of interest on the five-year recurring deposit scheme whereas retaining the charges for all different small financial savings schemes. Just like fastened deposits (FDs), recurring deposits (RDs) are additionally in style funding instruments amongst folks, particularly salaried and senior residents. The recurring deposit scheme gives a chance to construct up financial savings via common month-to-month deposits of fastened sum over a time period.
Post Office RD vs SBI RD vs HDFC Bank RD
The authorities has raised the rate of interest on the five-year recurring deposit scheme to six.7 per cent from 6.5 per cent for the December quarter.
SBI provides an rate of interest starting from 5.75%-7% on RDs maturing in a single 12 months to 10 years. These charges are efficient from February 15, 2023.
HDFC Bank provides an rate of interest starting from 4.50%-7% on RDs maturing in six months to 10 years. These charges are efficient from January 24, 2023.
5-year RD charges in contrast: Post Office vs SBI vs HDFC Bank
Post Office- 6.7%
SBI- 6.50%
HDFC Bank- 7%
Post Office RD vs SBI RD vs HDFC Bank RD: Maturity
SBI recurring deposits have maturity starting from 1 12 months to 10 years. HDFC Bank provides RD starting from six months to 120 months (10 years). Post Office provides RDs for a tenure of 5 years solely.
An SBI or HDFC Bank RD account may be opened by cheque/money, however an RD account in a Post Office may be opened by money solely.
Post Office RD vs SBI RD vs HDFC Bank RD: Income tax advantages
Investments in financial institution RD should not exempt from taxation underneath Section 80C of the Income Tax Act of 1961. However, put up workplace time period deposit of 5 years is eligible for tax deduction underneath Section 80C of the Income Tax Act, 1961. Consequently, buying put up workplace TDS offers the investor tax financial savings of as much as ₹1.5 lakh.
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Updated: 05 Oct 2023, 01:03 PM IST
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