Recurring deposits allow individuals to invest a fixed amount monthly and build the corpus for their short-term needs. Recurring deposits commonly referred to as RD are more flexible than fixed deposits and offer a systematic investment plan. Usually, the rate of interest is also similar to FDs. After the consecutive repo rate hikes by the Reserve Bank of India, several banks raised the interest rate on RDs with a tenor of five years. According to data compiled by Bankbazaar, these banks are offering up to 7.6 per cent interest on recurring deposits.

DCB Bank

The lender is offering 7.6 per cent interest on recurring deposits with a 5-year tenor. The rate is applicable on RDs having a value of less than Rs 2 crore.

Suryoday Small Finance Bank

Customers can earn 7.25 per cent on recurring deposits with a tenor of 5 to 10 years. For senior citizens, the rate is 7.5 per cent.

Ujjivan Small Finance Bank

Investors can avail 7.2 per cent interest on RDs with a tenor of 36 to 60 months. For RDs maturing in 63 to 120 months, the interest offered is 6.5 per cent per annum.

Deutsche Bank

The lender is offering 7.25 per cent interest on RDs that will mature in 60 months.

IndusInd Bank

The bank is providing interest of 7 per cent on recurring deposits of 61 months and above. Senior citizens will earn 50 basis points of extra interest.

Axis Bank

Axis Bank also offers 7 per cent interest on recurring deposits of a 5-year tenor. The private lender will offer 75 basis points more to senior citizens on deposits less than Rs 5 crore.

HDFC Bank

The private lender is giving 7 per cent interest per annum on RDs that will mature in 5 years. Senior citizens can earn 7.5 per cent interest.

For recurring deposits, investors can opt for a tenor of six months to 10 years. The minimum investment is Rs 1000. The instalment amount cannot be altered once it has been fixed.

The interest rate does not change during the tenure of the RD. Once the deposit matures, the investor will get a lump sum, which consists of the interest earned and the regular investment. These investments are liable to be taxed.

Read all the Latest Business News, Tax News and Stock Market Updates here