In February 2024, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank revised their fixed deposit and recurring deposit interest rates. With the help of a recurring deposit (RD) plan, you can save money over time by making consistent monthly payments of a predetermined amount, giving you the means to reach your financial goals.
FD interest of up to 9.21%: These banks offer over 9% interest rate on fixed deposits for senior citizens
Here is a quick comparison of HDFC Bank, ICICI Bank, and Kotak Mahindra Bank recurring deposit interest rates.
HDFC Bank offers interest rates between 4.50% to 7.10% for tenure ranging from 6 months to 10 years for general citizens. For senior citizens, the bank offer between 5% to 7.75%*However, HDFC Bank has not revised RD interest rates this year according to the bank website.
| Period | Interest Rate (per annum) | **Senior Citizen Rates (per annum) | Effective From |
| 6 Months | 4.50% | 5.00% | 24-Jan-23 |
| 9 Months | 5.75% | 6.25% | 24-Jan-23 |
| 12 Months | 6.60% | 7.10% | 24-Jan-23 |
| 15 Months | 7.10% | 7.60% | 21-Feb-23 |
| 24 Months | 7.00% | 7.50% | 24-Jan-23 |
| 27 Months | 7.00% | 7.50% | 24-Jan-23 |
| 36 Months | 7.00% | 7.50% | 24-Jan-23 |
| 39 Months | 7.00% | 7.50% | 24-Jan-23 |
| 48 Months | 7.00% | 7.50% | 24-Jan-23 |
| 60 Months | 7.00% | 7.50% | 24-Jan-23 |
| 90 Months | 7.00% | 7.75%* | 24-Jan-23 |
| 120 Months | 7.00% | 7.75%* | 24-Jan-23 |
According to the HDFC Bank website* is , “An Additional Premium of 0.25% (over and above the existing premium of 0.50%) shall be given to Senior Citizens who wish to book the Deposit for a tenure greater than 5 (five) years to 10 Years, during special deposit valid till 7th November’23. This special offer will be applicable to new Deposit booked by Senior Citizens during the above period. This offer is not applicable to Non-Resident Indian.”
ICICI Bank offers interest rates between 4.75% to 7.20% for tenure ranging from 6 months to 10 years for general citizens. For senior citizens, the bank offers between 5.25% to 7.75%. The rates are effective from February 17, 2024.
| Maturity Period | Rate of Interest (% p.a.) w.e.f Feb 17, 2024 | |
| General | Senior Citizen | |
| 6 months | 4.75% | 5.25% |
| 9 months | 6.00% | 6.50% |
| 12 months | 6.70% | 7.20% |
| 15 months | 7.20% | 7.75% |
| 18 months | 7.20% | 7.75% |
| 21 months | 7.20% | 7.75% |
| 24 months | 7.20% | 7.75% |
| 27 months | 7.00% | 7.50% |
| 30 months | 7.00% | 7.50% |
| 33 months | 7.00% | 7.50% |
| 36 months | 7.00% | 7.50% |
| Above 3 years upto 5 years | 7.00% | 7.50% |
| Above 5 years upto 10 years | 6.90% | 7.50% |
Penalty
According to the ICICI Bank, “Penalty is charged at monthly interest at the rate of Rs 12 per Rs 1000 for all delayed installments. Fraction of a month will be treated as full month for the purpose of calculating such interest. The total interest so chargeable shall be recovered from the total amount of interest payable at the time of maturity.”
Premature withdrawal charges
For amounts less than Rs 5 crore, the charge is 0.50% if withdrawal is made less than 1 year and 1.00% 1 year & above.
Kotak Mahindra Bank offers interest rates between 6% to 7.40% for tenure ranging from 6 months to 10 years for general citizens. For senior citizens, the bank offers between 6.50% to 7.90%. The rates are effective from February 24, 2024.
| Tenure | Interest Rate p.a. ( %) | Senior Citizen Rates p.a. ( %) |
| 6 Months | 6.00% | 6.50% |
| 9 Months | 6.00% | 6.50% |
| 12 Months | 7.10% | 7.60% |
| 15 Months | 7.40% | 7.90% |
| 18 Months | 7.40% | 7.90% |
| 21 Months | 7.40% | 7.90% |
| 24 Months | 7.15% | 7.65% |
| 27 Months | 7.15% | 7.65% |
| 30 Months | 7.15% | 7.65% |
| 33 Months | 7.15% | 7.65% |
| 3 years – less than 4 years | 7.00% | 7.60% |
| 4 years – less than 5 years | 7.00% | 7.60% |
| 5 years – 10years | 6.20% | 6.70% |
Penalty on delay in payment of RD installment
In case of delay in payment of any installment post grace period of 5 days, penal interest at the rate of RD interest rate (contracted rate of interest at the time of booking of the RD) + 2% p.a. or such other rate as may be specified by Bank from time to time, will be charged for the month of delay.
Premature Withdrawal of RD
In case of premature closure of this deposit within a month, no interest shall be paid and only principal amount will be returned.
On premature withdrawal of RD. The interest will be paid at the rate prevailing on the date of deposit for the tenure the deposit remained with the bank or at the contracted rate, whichever is lower post deducting penal charge of 0.5% on premature withdrawal of deposit.
