Prathama Bank RD Interest Rates
Prathama Bank RD Interest Rates. A record in which the financial backer necessities to store the pre-determined sum at periodical stretches (In portions typically regularly scheduled payments) for a long haul.
Bank RDs are offered by open area banks, private area banks, co-usable banks, unfamiliar banks and territorial rustic banks. You are needed to put resources into standard portions (generally month to month) which are pre-settled by you. Various residency having distinctive financing costs are there with the banks which you can choose as indicated by your need. Loan fees is determined quarterly not every year and development sum is available.
Untimely withdrawals, In repeating store incomplete withdrawals are not permitted, you can pull out the whole sum whenever however subsequent to charging a specific punishment, banks by and large charge 1% as punishment.
|Maturity Period||Interest Rate (p.a.)|
Prathama Bank Recurring Deposit
Prathama Bank offers you a chance to develop capital through normal month to month stores of fixed total throughout some undefined time frame. It offers you different alternatives of RD with time of store of least a year to greatest 120 months. There is no cap on greatest store measure of a RD. You need to give directions for removal of development continues at the hour of opening of your RD account. Advances or OD office of up to 90% of stored sum is accessible. Pace of interest on RD is same as relevant to term stores. The rate pertinent to all Senior Citizens old enough 60 years or more will be 0.50% over the appropriate pace of general clients.
Putting resources into Prathama Bank is an extraordinary choice for the individuals who have less income. The advantage in RDs is that you get a similar loan fee during the entire RD residency, regardless of whether the future RD rates are lower.
Other Banks Recurring Interest Rates List
|Bank Name||1 Year (p.a.)||5 Years (p.a.)|
|North East Small Finance Bank||7.50%||6.50%|
|Utkarsh Small Finance Bank||7.25%||7.25%|
|Suryoday Small Finance Bank||7.25%||7.25%|
|Equitas Small Finance Bank||7.10%||6.75%|
|Esaf Small Finance Bank||7.00%||6.00%|
|Fincare Small Finance Bank Ltd||6.95%||%|
|The Nainital Bank||6.70%||6.90%|
|Capital Small Finance Bank||6.50%||6.25%|
|United Bank Of India||6.50%||6.00%|
|Ujjivan Small Finance Bank||6.50%||5.55%|
|Standard Chartered Bank||6.30%||%|
|Laxmi Vilas Bank||6.00%||6.00%|
|Tamilnad Mercantile Bank||5.90%||5.75%|
|Punjab And Sind Bank||5.55%||5.55%|
|City Union Bank||5.50%||5.25%|
|Karur Vysya Bank||5.50%||5.65%|
|Au Small Finance Bank||5.50%||6.50%|
|South Indian Bank||5.50%||5.60%|
Features of Recurring Deposit
The most prominent highlights of RDs are as per the following:
- Adaptable method of saving permits you to pick the sum you can save consistently which can be pretty much as little as ₹ 10.
- Permits you to pick the residency of your investment funds too, which can go from 90 days to 10 years.
- The pace of interest offered on RDs is at any rate as high as that of Fixed Deposits. Repeating store financing costs fluctuate from 2.50% to 8.50%
- Minors can likewise open RD account under guardianship of guardians.
- Senior residents are qualified for higher pace of revenue, typically 0.5% more than different financial backers.
- Untimely and fractional withdrawals are permitted in RDs with some punishment.
- RDs can be utilized as guarantee to get credits. For the most part, the advance to esteem proportion is 80-90%.
Recurring Deposit Formula
Interest on RD is calculated quarterly by most banks. Compound interest is more beneficial to the depositor because he earns interest on the interest earned on the principal amount. The following formula gives the total amount received on maturity:
M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )Where,
M = Maturity Value
R = Monthly Installment
n = Number of quarters
I = Rate of interest/400
ILLUSTRATION: Suppose you want to buy a motorcycle a year from now and want to save money for it while earning interest over it. So you start by opening an RD account, depositing ₹ 5,000 per month for a year. Interest rate range from 2.50% to 8.50%. Let’s assume you get the highest RD rate of 8.50% on your deposits, compounded quarterly.
M= Maturity amount
R= in our case, it is ₹ 5,000
i = 8.50/400
n= compounding frequency (since it is quarterly, it will be 4)
Using the above formula and values, we solve for M and get ₹ 62,815
So, you will receive the amount of ₹ 62,815 after the maturity of the deposit after one year and the interest earned on the deposit is ₹ 2,815.
Prathama Bank Recurring Deposit Calculator
Prathama Bank Recurring Deposit account, a pre-specified amount is deposited at periodic intervals on a regular basis and its term is available from a minimum of 6 months to a maximum of 10 years with monthly instalments of 12, 24, 36, 48, 60, 72, 84, 96, 108 and 120 months.
Following RD calculator facilitates for you to easily calculate the amount of interest earned as well as the maturity amount. Please note that the output of this calculator will give you a tentative idea of the maturity values and only your bank can tell you the exact amount that you will earn.
Arunachal Pradesh Rural Bank RD Interest Rate Calculator helps computing interest earned on an RD on the basis of following components:
(1) Monthly Amount
You need to enter an amount which you will invest monthly. It is also called monthly instalment. Suppose you want to invest Rs 2000 each month then you will enter Rs 2000 in the given space.
It is the RD duration/ tenure/ term for which you have registered your RD. It is to be specified in months. It ranges from 6 months to 120 months.
(3) Interest Rate
It is the rate of interest which will be provided by the bank on the RD. It depends on the duration of your RD. It varies from bank to bank.
Output of RD Interest Rate Calculator
After you enter all the components mentioned above (Monthly Amount, Duration and Interest Rate) in the space provided and press calculate button, the output will show the following results:
It will show total amount deposited by you in RD during its full tenure.
It will show the maturity value of your RD after its full tenure. It depends upon deposited amount, tenure of RD and rate of interest thereon.
It shows total interest earned on your RD. It is the difference between Maturity Value and Deposit Amount.
Premature Withdrawal or Breaking of RD
Only after maturity will the sum be deducted. In an accident, you will interrupt your RD by closing your account until maturity. The bank will subtract 1 or 2 percent of the interest rate paid on the RD for the period the amount was with the bank as an interest penalty.
If you order a premature cancellation of your deposit, the minimal lock-in term shall be three months, which would result in a zero interest that will only be reimbursed for a principal sum. Alongside the cancelled interest, all offered benefits are also revoked.
Partial Withdrawal of RD
Halfway withdrawal isn’t permitted. In any case, a few banks offer the office to acquire an advance or overdraft by keeping your store as insurance. Then again, untimely withdrawals are permitted by mailing stations on the off chance that you have a RD account with them for in any event a year. The removed sum is viewed as a credit, which must be paid in a single amount.
Tax Exemption on Recurring Deposits
Prior no expense was deducted on repeating store. With impact to first June 2015, these stores are dependent upon TDS (charge deducted at source) according to the annual duty laws. Notwithstanding, no TDS would be deducted if the premium pay procured doesn’t surpass ₹ 10,000 out of a monetary year.
Assessment is to be paid according to appropriate pieces at the hour of documenting an annual government form. In the event that you have submitted Form 15G (if there should arise an occurrence of ordinary residents) and 15H (in the event of senior resident) in the bank, your TDS won’t be deducted (in the event that your complete available pay doesn’t go under charge piece).
RD for Senior Citizens
Senior citizens can also open an RD account. The rate of interest they earn is slightly higher than the regular deposits available to other citizens. Generally, banks offer 0.25 per cent to 0.75 per cent more interest than normal RDs, compounded annually and the tenure and amount are fixed by banks. Indian residents and NRIs both can open this account.
Your age must be above 60 years on the date of opening the RD account.
Loan against Recurring Deposit
You can benefit credit against your RD account by utilizing your kept sum as guarantee. By and large, banks give 75 to 90 percent of the saved sum as a credit. Be that as it may, the advance to esteem shifts from one bank to another. For instance SBI gives 90% of the stored sum as a credit though Bank of Baroda gives 95% of the kept sum as an advance. Advance against RD is a speedy and moment credit that can be profited with ostensible financing costs of 1-2% higher than that offered for you.
Post office Recurring Deposit Scheme (PORD)
PORD is the deliberate saving arrangement that offers ensured returns. The goal of the PORD account is to give a guaranteed return, intensified quarterly or month to month over a time of 60 months. It doesn’t offer any expense motivations, however it is liked by little savers because of government backing.
- FICO score: It doesn’t need any business rating since it is offered by the Government of India.
- Exit Option: Penalty is charged if there should be an occurrence of untimely shutting of the record.
- Other Risks: There is no danger related with this venture and it is totally hazard free.
- Where to Open an Account: You can open the record in any mail center.
Post Office Monthly Income Scheme
Following documents are needed to open a PORD Account:
Numerous banks offer Flexi stores that are a variation of RD where an investor can contribute a changing or adaptable measure of cash in his record each month. In this sort of RDs, the investor needs to pick the center sum and the adaptable portion sums at the hour of opening the record. This sum must be in products of the center sum. For instance, if the center sum is picked to be ₹ 200, the occasional stores will likewise be both of ₹ 200 or in products of that.
This record gives adaptability and accommodation to the contributor permitting him to store a sum he can easily save each month. Interest payable is fixed for the center sum, and interest on the products is determined dependent on the term for which the extra assets have been kept into the records.
Recurring Deposit Products
All banks offer RDs at attractive rates and tenures and a few of them offer products which are aimed at serving special needs. These are tabulated below.
|Bank Name||Product Name||Deposit Amount||Tenure|
|Private Bank||Croma delightful deposits
MakeMyTrip Holiday Savings Plan
Tanishq Jewelry Plan
Thomas Cook Holiday Savings Account
|Rs. 5,000 or Rs. 10,000
Rs. 5,000 or Rs. 10,000
|6 months or 12 month
6 months or 12 month
|SBI||Holiday Saving RD||₹ 100||N.A|
|Bank of Baroda||Samriddhi Quarterly Recurring Deposit
Samriddhi Half Yearly Recurring Deposit
Yatha Shakti Jama Yojna
|Central Bank of India||Cent Swa Shakti Flexi
State Bank of India, the country’s biggest moneylender, on Monday, decreased its financing cost on home credits up to ₹ 75 lakh to 6.70 percent, its most minimal financing cost on home advances on record. The financing cost on home advances between ₹ 75 lakh – ₹ 5 crores have been decreased to 6.75 percent, SBI said in an official statement. In the interim, the bank is additionally offering a 100 percent waiver on advance preparing expenses. Ladies borrowers will get an extra concession of 5 premise focuses on the loan cost, SBI added.
“The country’s biggest moneylender, State Bank of India (SBI) has improved the proposals on Home Loans and now offers revenue concession of upto 70 bps with financing costs beginning from 6.70 percent onwards (restricted period offer completion on 31st March ’21). The loan specialist is likewise giving a 100 percent waiver on handling charges. The interest concessions depend on the credit sum and CIBIL score of the borrower. SBI accepts that it is imperative to stretch out better rates to clients who keep up great reimbursement history,” SBI said in an official statement.
✅What is the eligibility for opening an RD account?
Indian residents and HUF (Hindu Undivided Families) can open RD account. NRIs can also open the RD account through NRO and NRE accounts. Banks provide this scheme for minors as well, under the guardianship of parents to supervise their finances.
✅What is the common tenure/duration of Recurring Deposits?
RD can be opened for minimum 6 months which can further be increased in multiples of 3 months that can go up to maximum tenure of 10 years. However, minimum tenure can be different for different banks. For example- minimum tenure for RD in SBI is 12 months whereas 6 months in Private Bank.
✅What exactly happens on maturity of an RD account?
On maturity of your RD account, you can ask the bank to transfer the principal amount and the accumulated interest component directly into your linked savings account. You can also invest your amount in fixed deposits after maturity.
✅What is the nomination facility in terms of an RD account?
Nomination facility is available in recurring deposits. Whether you open it in single name or joint name, only one nominee per account is permissible. You should ensure that the nomination is followed as per RBI rules. You can change the nominee through declaration in appropriate form.