Top 7 Banks Offering 7 To 8% Returns To Senior Citizens On Recurring Deposits of 2 Years

Whenever it pertains to a safe investment plan with consistent returns, senior citizens choose recurring deposit (RD) accounts since they not only earn a higher interest rate than regular deposits but also allow them to make contributions on a monthly basis. Individuals aged 60 and more generally earn an additional 0.25 percent to 0.65 percent interest rate over standard RD rates, and with banks raising interest rates on term deposits, now is the best time for senior citizens to invest in recurring deposits. Deposits made in recurring accounts are insured by DICGC up to Rs 5 lakhs, which defines the importance of having RDs in a senior citizen's debt portfolio.

Recurring Deposits are not eligible for tax deductions, thus income tax must be paid on the interest earned, which elderly folks should consider. The duration of a recurring deposit typically spans from six months to ten years, and banks deduct TDS (tax deducted at source) on the interest that is earned on the RD, therefore the TDS rate is ten percent. In the midst of the bank's rising interest rate cycle, here are the top 7 banks that are now giving 7 to 8% returns on recurring deposits with a two-year maturity. It's worth noting that we have selected banks based on higher interest rates rather than market capitalization.

Note: Interest rates applicable on recurring deposits maturing in 2 years are marked in bold.

North East Small Finance Bank

A recurring deposit account can be started with a minimum monthly installment of Rs. 100 and multiples of Rs. 10 for a maturity period of 3 months to 10 years at North East Small Finance Bank. Individuals and groups eligible for recurring deposits include residents/individuals, Hindu undivided families, sole proprietorship firms, partnership firms, limited companies, and trust accounts. The bank provides excellent interest rates on RDs, which is compounded and paid out on a quarterly basis. On recurring deposits maturing in 2 years, the bank is offering an interest rate of 7.50% to the general public and 8% to senior citizens. The bank is giving the interest rates stated below on recurring deposits as of January 27, 2022.

Tenure	Regular interest rate p.a. in %	Senior citizens
3 Months	4.25	4.75
6 Months	4.5	5
9 Months	5.5	6
1 Year	5.5	6
2 Year	7.5	8
3 Year	7	7.5
4 Year	7	7.5
5 Years	6.5	7
More than 5 years upto 10 years	6.5	7
Source: Bank Website

Jana Small Finance Bank

A Regular Recurring Deposit account with Jana Small Finance Bank can be started with a minimum monthly deposit of INR 1,000. It is a good investment for older folks because of the favourable interest rates and multiple interest payout options such as monthly, quarterly, half-yearly, and yearly. Individuals, minors, proprietorships, HUFs (Hindu Undivided Families), registered and unregistered organisations, cooperative societies, trusts, partnerships, non-governmental organisations, and private limited companies are all eligible to establish an RD account with Jana Small Finance Bank. On deposits maturing in 2 years, the bank is offering an interest rate of 6.75% to regular customers and 7.55% to senior citizens. These rates are effective as of 11th January 2022.

Tenure	Regular interest rate p.a. in %	Senior citizens
> 1 Month - 6 Months	4.00%	4.80%
> 6 Months - 12 Months	5.50%	6.30%
12 Month	6.75%	7.55%
> 12 Months - 36 Months	6.75%	7.55%
> 36 Months - 60 Months	6.75%	7.55%
> 60 Months - 120 Months	6.00%	6.80%
Source: Bank Website

Utkarsh Small Finance Bank

A Recurring Deposit scheme of Utkarsh Small Finance Bank can be started with an amount in multiples of Rs. 100 only and for a maturity term of 6 months to 120 months. Recurring deposits at Utkarsh SFB are available to Hindu undivided families, sole proprietorship firms, partnership firms, limited companies, and trust accounts. Regular customers will receive a 7.00 percent interest rate on recurring deposits maturing in two years, while senior citizens would receive 7.50 percent. The bank is giving the following interest rates on recurring deposits as of January 20, 2022.

Tenure	General Customers	Senior Citizens
Upto 6 months	6.50%	7.00%
9 months	6.50%	7.00%
12 months	6.75%	7.25%
15 months	6.75%	7.25%
18 months	6.75%	7.25%
21 months	6.75%	7.25%
Above 21 Months to less than 24 Months	6.75%	7.25%
24 months to 36 months	7.00%	7.50%
Above 3 Years upto 5 Years	6.75%	7.25%
Above 5 years upto 10 years	6.75%	7.25%
Source: Bank Website

Ujjivan Small Finance Bank

A recurring deposit account at Ujjivan Small Finance Bank can be started with a minimum of Rs 100 and multiples of Rs 100 for a 6-month to 10-year maturity term. On recurring deposits, interest is calculated quarterly and paid at maturity only, with a premature closure option available. For Senior Citizens, the bank offers a 0.5 percent additional rate. The bank provides a 6.60 percent interest rate to the general public on deposits maturing in two years, and a 7.35 percent interest rate to senior citizens on deposits maturing in two years. These rates are in force from December 31, 2021.

Tenure	Interest Rate (p.a.)
6 months to 9 months	4.75%
12 months	6.50%
15 months to 18 months	6.00%
21 months to 24 months	6.60%
27 months to 36 months	6.50%
39 months to 60 months	6.25%
63 months to 120 months	6.00%
Additional Interest Rate for Senior Citizens	0.75%
Source: Bank Website

IndusInd Bank

A recurring deposit account at IndusInd Bank can be established with a minimum deposit of Rs 500 and subsequent deposits in multiples of 100 with maturities ranging from 9 months to 61 months and beyond. The bank provides a 6.5 percent interest rate to the general public and a 7 percent interest rate to senior citizens on recurring deposits maturing in two years. These rates are in effect from February 16th, 2022.

Tenure	Interest Rates p.a. (%)	Senior Citizen Rates p.a.(%)
09 Months	5.5	6
12 Months	6	6.5
15 Months	6	6.5
18 Months	6	6.5
21 Months	6	6.5
24 Months	6.5	7
27 Months	6.5	7
30 Months	6.5	7
33 Months	6.5	7
3 years to below 61 month	6.5	7
61 month and above	6	6.5
Source: Bank Website

RBL Bank

RBL Bank offers recurring deposit accounts with maturities ranging from 6 to 240 months. The minimum amount of a recurring deposit is Rs. 1,000, and the bank is paying a 6.5 percent interest rate to the general public and a 7 percent interest rate to senior citizens on deposits maturing in two years. These rates are effective as of February 03, 2022.

Tenure	Interest Rates p.a. (%)	Senior Citizen Rates p.a.(%)
7 days to 14 days	3.25%	3.75%
15 days to 45 days	3.75%	4.25%
46 days to 90 days	4.00%	4.50%
91 days to 180 days	4.50%	5.00%
181 days to 240 days	5.00%	5.50%
241 days to 364 days	5.25%	5.75%
12 months to less than 24 months	6.25%	6.75%
24 months to less than 36 months	6.50%	7.00%
36 months to less than 60 months	6.30%	6.80%
60 months to 60 months 1 day	6.30%	6.80%
60 months 2 days to less than 120 months	5.75%	6.25%
120 months to 240 months	5.75%	6.25%
Source: Bank Website

Bandhan Bank

Bandhan Bank gives customers the option of choosing installment amounts in multiples of Rs 1 starting at Rs 100. An RD account can be created for a six-month to ten-year maturity term. Regular customers will receive a 6.25 percent interest rate on deposits maturing in two years, while senior people would receive a 7% interest rate. These are effective as of January 12, 2022.

Tenure	Interest Rates p.a. (%)	Senior Citizen Rates p.a.(%)
7 days to 14 days	3.00%	3.75%
15 days to 30 days	3.00%	3.75%
31 days to Less than 2 months	3.50%	4.25%
2 months to less than 3 months	3.50%	4.25%
3 months to less than 6 months	3.50%	4.25%
6 months to less than 1 year	4.50%	5.25%
1 year to 18 months	5.25%	6.00%
Above 18 months to less than 2 years	5.25%	6.00%
2 years to less than 3 years	6.25%	7.00%
3 years to less than 5 years	6.25%	7.00%
5 years to up to 10 years	5.60%	6.35%
Source: Bank Website