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- Many Banks Including IndusInd And Jana Small Finance Bank Are Offering Great Interest On RD, Know Which Bank Is Giving How Much Interest Here
New Delhi6 minutes ago
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You can easily raise money for your child’s education or marriage through Recurring Deposit (RD). Under RD, you can create a large amount by making small savings. You keep putting a fixed amount in it every month when the salary comes and when it matures, you will have a huge amount in your hand. There are many small savings banks that are giving you up to 7% interest on RD.
You can start investing with Rs 100
You can invest a minimum of Rs 100 per month in this RD scheme. There is no limit on the maximum deposit amount beyond this. One can invest in this for a tenure ranging from 6 months to 10 years.
Which bank is giving how much interest
|Bank||Interest on 1 year RD||Interest on RD for 2 years||Interest on RD for 5 years|
|Jana Small Finance Bank||8.00||8.50||8.00|
|Ujjivan Small Finance Bank||7.50||7.50||6.75|
|AU Small Finance Bank||6.75||7.25||7.25|
|Central Bank Of India||6.40||6.70||6.20|
|bank of india||6.65||6.70||6.50|
How much money will be received by doing RD for 5 years?
If you invest Rs 3000 every month in RD for 5 years, then we are telling you the amount you will get after 5 years according to the interest rate of the bank.
|Bank||how much money will you get||how much interest will you get|
|Jana Small Finance Bank||2.22 lakh Rs.||42 thousand Rs.|
|indusind bank||2.17 lakh Rs.||37 thousand Rs.|
|Ujjivan Small Finance Bank||2.15 lakh Rs.||36 thousand Rs.|
|AU Small Finance Bank||2.17 lakh Rs.||37 thousand Rs.|
|bank of india||2.13 lakh Rs.||33 thousand Rs.|
note- This calculation has been done in a rough way. Banks and post offices review the interest rates from time to time.
Tax is to be paid on the interest earned from RD
If the interest income from Recurring Deposit (RD) is up to Rs 40000 (Rs 50000 in case of senior citizens), then you do not have to pay any tax on it. 10% TDS is deducted on income above this.
If you do not have PAN, you will get more tax.
10% TDS is deducted by the bank if the interest income exceeds the prescribed exemption limit. But if you have not given PAN then the TDS rate becomes 20%.
What to do if your total income is not taxable?
Bank TDS is not deducted if your annual interest income from savings account, FD or RD is more than Rs 10000, 40000 and 50000 respectively but total annual income (including interest income) is not taxable . For this, senior citizens have to submit Form 15H to the bank and Form 15G to others. Form 15G or Form 15H are self-declared forms. In this, you state that your income is outside the tax limit. Whoever fills this form will be kept out of the tax net.