Type
of account - The
account you hold will make a difference in the eligible interest rates. Regular
savings accounts usually get higher interest than the NRE/NRO accounts. Some
banks offer the same interest rates to both account holders.
Tenure
- The
tenure of your deposit is one of the most important factors in determining the
RD interest rate. Medium term deposits generally earn a much higher interest
rate. Some banks offer the highest rate on long-term deposits of 10 years. But
this is not always the case as some banks also offer the same interest rate on
a 1-year deposit as well as a 10-year deposit.
Age
- Almost
all banks offer a higher rate of interest to senior citizens. This rate is
usually 0.5% per annum higher than the regular interest rates. Junior accounts
can also stand to earn a higher interest rate. This depends on the bank’s offer
on minor accounts.
Choice
of bank - Interest
rates vary quite a bit between different banks. Currently, the top banks offer
recurring deposits starting at 7% per annum interest. Nationalised banks tend
to offer a higher interest rate of up to 8% per annum.
Schemes
on offer - Banks
also have different recurring deposit schemes running. Corporation Bank has a
Millionaire Scheme on offer wherein you will receive a million rupees at the
end of the scheme. This deposit carries a very high interest rate of 9.25% per
annum. So the choice of your deposit scheme will also factor into the interest
rate. Depending on the benefits offered with the RD scheme.