Reccuring Deposit
Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits
What do we provide
Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time. Minimum Period of RD is 6 months and maximum is 10 years.
- It is similar to making FDs of a certain amount in monthly installments, for example ₹ 1000 every month.
- This deposit matures on a specific date in the future along with all the deposits made every month.
monthly saving plan
| The amount of monthly installment | 12 Months | 24 Months | 36 Months |
|---|---|---|---|
| Rs.100 | 1246 | 2589 | 4045 |
| Rs.500 | 6231 | 12944 | 20227 |
| Rs.1000 | 12462 | 25888 | 40454 |
Features of Recurring Deposit
The main features of Recurring Deposit account are as follows:
- Recurring Deposit schemes aim to inculcate a regular habit of saving among the public.
- Minimum amount that can be deposited varies from bank to bank. It can be an amount as small as Rs.10.
- The minimum period of deposit starts at six months and the maximum period of deposit is ten years.
- The rate of interest is equal to that offered for a Fixed Deposit and is hence higher than any other Savings scheme.
- The Recurring Deposit can be funded periodically through Standing Instructions which are the instructions given by the customer to the bank to credit the Recurring Deposit account every month from his/her Savings or Current account.