2 Best Recurring Deposits For Investment In 2021 To Get Returns Up To 8.50%

A Recurring Deposit (RD) is a type of deposit account that allows you to make regular deposits and earn guaranteed returns on your investment when it comes to fixed-income investments. For risk-averse investors, particularly salaried individuals, recurring deposits are a stable investment bet because they allow monthly deposits as well as a flexible maturity period that can range from 6 months to 10 years, deposit safety up to Rs 5 lakhs provided by DICGC, and fixed interest rate ingredient. When compared to a regular savings account and debt mutual funds, investment in recurring deposits can yield higher returns, making it an excellent instrument for both regular and senior citizens. Amid the current time of low-interest rates regime of banks where fixed deposits may provide returns of 5 to 6%, investing in 2 recurring deposits based on our recommendations can provide you returns of 8 to 8.50%, which is unrivalled by any other fixed-income investment.

Shriram Transport Finance Recurring Deposit

Shriram Transport Finance enables recurring deposits with terms ranging from 12 to 60 months. All resident individuals and HUFs can open a recurring deposit (RD) account based on their personal financial goals to receive a variety of benefits such as premature withdrawal, auto refund, auto-renewal, online account opening feature, online recurring deposit calculator, and a minimum deposit amount of Rs 500 per installment.

Recurring Deposits at Shriram Transport Finance can also be opened on behalf of a minor or in joint names of two to three residents. Senior citizens are not allowed to get additional rate benefits on their deposits, and also loans against deposits are not allowed by Shriram Transport Finance.

Shriram Transport Finance Recurring Deposit Interest Rates

Keeping aside the interest rate component for a moment, I'd like to inform our readers and investors that Shriram Transport Finance Recurring Deposit has been rated "FAAA/Stable" by Credit Rating Information Services of India Limited (CRISIL) and "MAA+ / with Stable Outlook" by Investment Information and Credit Rating Agency of India Limited (ICRA).

This rating demonstrates us a comprehensive perspective on deposit safety and good credit health. Investing in recurring deposits of Shriram Transport Finance can be a smart choice because AAA is the highest rating and is healthier than those with AA, A, or BBB ratings. However, investors should bear in mind that, unlike bank FDs, corporate FDs do not cover deposit insurance benefits provided by DICGC.

However, we would like investors to not look at the attractive interest rates first and invest only for the short term to minimize both interest and principal risk in case of default as we have seen 2 years back with Dewan Housing Finance Ltd. (DHFL).

Period (months)	Rate in %
12	7.03
24	7.12
36	8.18
48	8.34
60	8.50
With effect from 1st August 2021

North East Small Finance Bank Recurring Deposit

North East Small Finance Bank is presently offering the highest interest rate of 7.50 percent to the general public and 8.00 percent to senior people on recurring deposits maturing in two years among all small finance banks, including private and public sector banks. Investing in a recurring deposit with North East Small Finance Bank to achieve an unbeatable interest rate and DICGC deposit safety is a good option for investors who don't want to take any risk with their principal amount and applicable interest rates based on their chosen maturity term

TENURE	Interest Rates In % For Regular Customers	Interest Rates In % For Senior Citizens
3 Months	4.25	4.75
6 Months	4.50	5.00
9 Months	5.50	6.00
1 Year	5.50	6.00
2 Year	7.50	8.00
3 Year	7.00	7.50
4 Year	7.00	7.50
5 Years	6.50	7.00
More than 5 years upto 10 years	6.50	7.00
Source: Bank Website, Effective from 19th April 2021