Introduction
The concept of banking
is very interesting and
banks offer a number
of different schemes
under which th public
can put their money in
and get a return over
it. In this project we
shall look at the
different types of
accounts and schemes
offered by banks in
india.
Recurring deposit is a
very interesting
scheme in which
people can invest in. in
the next part of the
project we shall discuss
the study on interest
rates offered various
banks. Then from the
study, we shall
determine the banks
providing the highest
and lowest interest
rates in different
schemes.
Shares are a
representation of
partial ownership in a
company. There are a
number of big
companies in india, in
the next part of the
project we shall discuss
the shares and
dividends offered by
most prominent
companies of india
including Tata motors,
sbi, reliance industries
bharat petroleum and
indian oil.
SURVEY OF VARIOUS
TYPES OF BANK
ACCOUNTS AND
RATES OF INTEREST
OFFERED
INTRODUCTION
A Bank may be defined as a company which
collects money from the public in the form
of deposits and lends the same to
borrowers. It is an institution that provides
facilities for safe keeping, lending and
transfer of money. Banking institutions provide different types
of bank accounts according to the needs of the customer. These accounts have
different interest rates, minimum deposits, and other criteria.
TYPES OF BANK
ACCOUNTS
Bank accounts are classified into four
different types. They are,
1. Saving Account
2. Current Account
3. Recurring Deposit Account
4. Fixed Deposit Account
1. Saving Account: - A savings account is
an interest-bearing deposit account
held at a bank or another financial
institution that provides a
modest interest rate.
The common public makes this type of account mainly to save money. It can be opened
either by an individual or jointly by people. They are mostly eligible for students, pensioners
and working professionals
Given below are a few features of the Savings account:
The rate of interest in savings account is usually between 4% to 6% per annum
The main feature is that there is no limit to the number of times the account holder can deposit
money in this account but there is a restriction on the number of times money can be
withdrawn from this account.
There is no minimum balance that is to be maintained for this type of account
Savings bank account is further divided into two types: Basic Savings Bank Deposit Account
(BSBDA) and Basic Saving Bank Deposit Accounts Small Scheme(BSBDS)
2. Current Account: - These accounts are not used for the
purpose of savings rather are used for business purposes. A
current account is opened by
businessmen who have a higher
number of transactions with
the bank . It includes deposits,
withdrawals and other transactions.
Current account can be opened in co-
operative bank and commercial bank.
Some important features related to current account are listed below:
This type of bank account is mostly opened by businessmen. They are mostly suitable for
different associations, Institutions, Companies, Religious Institutions and other business-
related organizations.
The main feature is that there is no fixed number of times that money can either be deposited
or withdrawn from such accounts
No interest is paid on such accounts
3. Recurring Deposit Account: - Recurring Deposit
account or RD account is a form of account wherein the account holder needs
to deposit a fixed amount every month until it reaches the fixed maturity date
and the total amount is repaid with
interest at the end of the particular
fixed period.
The features of the Recurring deposit account have been discussed below:
Any individual or an Institution can open a recurring deposit account either separately or jointly
The range of months for which an RD account can be opened varies from 6 months to 120
months
Periodic or monthly instalments that need to be added can be as low as Rs.50/- or may vary
from bank to bank
A passbook is issued for this type of bank account
Premature withdrawal of the amount is permitted, in turn a sum of the amount is deducted as a
penalty
4. Fixed Deposit Account: - FD or a fixed deposit
account is another type of bank account that can be opened in any Public or
The account which is
Private sector bank.
opened for a particular fixed period
(time) by depositing particular
amount (money) is known as Fixed
(term) Deposit Account. It means that
the deposit is fixed and is repayable
only after a specific period is over.
The list of important things that need to be known with respect to the fixed deposit
account has been mentioned below:
In this type of account, the account holder needs to deposit a fixed amount of sum for a fixed
time period
The amount deposited in FD account can only be withdrawn all at once and not in instalments
Banks pay interest on the fixed deposit account
The rate of interest depends upon the amount you deposit and for the time duration of the FD
NRI Account
To fulfil the bank requirements of a Non-Residential Indian or a Person of India Origin, the
option of NRI account is available.
Recurring Deposit Interest Rates
Recurring deposit is the most preferred risk-free investments in India.
RD’s offer rate of interest ranging from around 2.50%-8.50%. RD
interest rates are similar to that of Fixed Deposit but with the
flexibility of monthly instalments. The minimum time period of
depositing ranges from 6 months to 10 years.
Calculate Interest Rate for Recurring Deposit Scheme
FORMULAE
The interest on the recurring deposit
account can be calculated by using the
formula:
n(n+1) r
I = P* 2*12 *100
Where I is the interest, P is the monthly
deposit, n is the number of months and r is
the interest rate percent per annum.
The maturity value on a recurring deposit
account can be calculated by using the
formula:
MV = P*N + I
Where MV is the maturity value, P is the
Monthly deposit, n is the number of
months and I is the simple interest.
Premature Withdrawal of RD
Premature withdrawal is not allowed on RD. in case of emergencies we can
withdraw money before maturity by closing the account in the financial
institution. The bank may deduct a penalty of 1% – 2%.
Tax Exemptions of an RD
Recurring deposit programs, like other personal tax-saving and investing tools,
are taxed. If the total interest earned from an RD surpasses Rs.10,000 in a
single fiscal year, a TDS of 10% is deducted.
Types of RD Interest Rates
Regular RD Savings Scheme
Indian banks offer recurring deposits to all major citizens. Customers can
choose a fixed monthly amount for a tenure of a minimum of 6 months to 10
years. A customer can withdraw the lump sum amount at the end of the
tenure. Under this scheme, an account can be opened with as low as Rs.10 per
month and the interest rates generally range from 7%-8% p.a.
RD Schemes for Minors
Banks also have a scheme under which an account can be opened for kids.
Parents or guardians can open this account for their children to start
accumulating funds for their future, education and some other needs. These
schemes develop a sense of saving among youngsters.
RD Schemes for Senior Citizen
As mentioned earlier, senior citizens can avail of a comparatively higher rate
of interest from RD schemes. Usually, the interest rates are high and range
between 7.5% to 9.25% per annum.
Major Bank’s Best RD Interest Rates 2024
There are a plethora of banks that provide customers with the facility to get an
RD account opened. Let’s have a look at the highest rd rates in 2024 from the
top banks.
Bank General Interest Senior Citizen Interest
Rates Rates
SBI RD Interest Rates 4.40% – 5.50% 4.90% – 6.20%
ICICI RD Interest Rates 3.50% – 5.50% 4.00% – 6.30%
HDFC RD Interest Rates 4.40% – 5.50% 4.90% – 6.25%
Kotak Bank RD Interest 4.30% – 5.20% 4.80% – 5.70%
Rates
Axis Bank RD Interest Rates 4.40% – 5.75% 4.65% – 6.50%
BOB RD Interest Rates 4.30% – 5.25% 4.80% – 5.75%
IDFC First Bank 6.75% – 7.25% 6.75% – 7.25%
PNB 4.40% – 5.30% 4.90% – 6.05%
IDBI Bank 7.00% – 7.15% 7.50% –7.65%
Citibank 2.75% – 3.00% 3.25% – 4.00%
Canara Bank 4.45% – 5.25% 4.95% –5.75%
Indian Bank 6.25% – 6.30% 6.75% – 6.80%
Indian Overseas Bank 4.90% – 5.20% 5.40% – 5.70%
Union Bank of India 4.40% – 5.60% 4.40% – 5.60%
Yes Bank 5.00% – 6.50% 5.50% – 7.25%
Bank of Maharashtra 4.00% – 4.90% 4.50% – 4.40%
Bank of India 4.30% – 5.05% 4.80% – 5.50%
Central Bank of India 4.20% – 5.00% 4.20% – 5.00%
Punjab and Sind Bank 4.45% – 5.25% 4.95% – 5.75%
UCO Bank 4.70% – 5.00% 4.90% – 5.00%
South Indian Bank 4.10% – 5.65% 4.00% – 6.15%
Bandhan Bank 4.50% – 5.00% 5.25% – 5.75%
AU Small Finance Bank 4.00% – 6.00% 4.50% – 6.50%
Post Office RD Interest Rate 6.20% – 6.20% 6.20% – 6.20%
Ujjivan Small Finance Bank 4.75% – 6.50% 5.25% – 7.00%
Equitas Small Finance Bank 6.25% – 6.50% 6.75% – 7.00%
Jana Small Finance Bank 5.50% – 6.75% 6.00% – 7.25%
ESAF Small Finance Bank 5.00% – 6.00% 5.50% – 6.50%
Lakshmi Vilas Bank 2.75% – 6.00% 2.75% – 6.50%
RBL Bank 4.50% – 6.30% 5.00% – 6.80%
Karur Vysya Bank 4.00% –5.35% 4.50% – 5.50%
IndusInd Bank 5.50% – 6.00% 6.00% – 6.50%
IDBI Bank provides the highest interest on general RD schemes of 7.00%-
7.15%.
Citibank provides the lowest interest rates on the general RD schemes of
2.75%-3.00%.
Jana Small Finance Bank provides the highest interest on Senior citizens’ RD
schemes of 6.00%-7.25%.
Citibank provides the lowest interest rates in the senior citizen's RD schemes
of 3.25%-4.00%
The rd interest rates differ from bank to bank and also on factors like which
category you fall under and the tenure you choose. Almost all the banks
privilege senior citizens with a higher rate of interest than regular citizens. A
variety of recurring deposit schemes is made available by banks nowadays.
Apart from the regular scheme, some additional special schemes are also
made available to people to help them fulfill their goals.
