Private money lender HDFC Bank has increased its interest rates for recurring deposits which are effective from October 11, 2022. On its official website, The bank updated the customers that it increased the interest rates on select tenures by 50 basis points.
According to the report, HDFC Bank hiked interest rates on recurring deposits which mature in six months to 36 months and 90 to 120 months. After revision, the private money lender will offer interest rates of 4.25 per cent to 6.10 per cent on the deposits ranging from six months to ten years for the general public.
On the other hand, the bank is now offering interest rates of 4.75 per cent to 6.75 per cent to the senior citizens on deposits with tenures from six months to ten years.
As per the report, the bank increased interest rates of fixed deposits of less than ₹2 crore with effective from October 11, 2022. The HDFC Bank interest rates are ranging from three per cent to six per cent on the deposits which mature in seven days to ten years for the general public, whereas the senior citizens are being offered 3.50 per cent to 6.75 per cent interest rates.
What are recurring deposits?
Recurring deposits are unique term deposits which allow people to make regular investments and earn decent returns on them. It often provides flexibility and ease of investments.
The recurring deposit schemes are considered beneficial for the salaried professionals as they don't have to invest a lump sum amount one at a time. The minimum amount of deposit varies from one bank to another. One can invest with an amount as small as ₹1,000. The minimum period of deposit is six months, while the maximum period of a deposit is 10 years. The rate of interest is equivalent to that offered for a Fixed Deposit. Therefore, the interest rates are higher than Savings Account.
{{/usCountry}}The recurring deposit schemes are considered beneficial for the salaried professionals as they don't have to invest a lump sum amount one at a time. The minimum amount of deposit varies from one bank to another. One can invest with an amount as small as ₹1,000. The minimum period of deposit is six months, while the maximum period of a deposit is 10 years. The rate of interest is equivalent to that offered for a Fixed Deposit. Therefore, the interest rates are higher than Savings Account.
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