A Recurring Deposit, commonly known as RD, is a unique term-deposit that is offered by Banks. It is an investment tool which allows people to make regular deposits and earn decent returns on the investment. Due to the regular deposit factor and an interest component, it often provides flexibility and ease of investments to users/individuals.
Features of a Recurring Deposit Account
- Recurring Deposit schemes aim at inculcating a regular habit of saving in people
- You could invest with an amount as small as Rs. 100 per month.
- The minimum period of deposit is six months, while the maximum period of a deposit is 3 years
- The rate of interest is equivalent to that offered for a Fixed Deposit. Therefore, the interest rates are higher than Savings Account.
- A Recurring Deposit can be funded periodically through Standing Instructions that are usually instructions given by the customer to the bank, to credit the RD account every month from his/her Savings or Current Account.
With our Bank Recurring Deposits, you can-
- Start with an investment as small as Rs. 100 (and in multiples of Rs. 100 after) or as large as Rs. 1,99,99,900 per month
- Minimum tenure of about 6 months (and in multiples of 3 months thereafter) up to a maximum tenure of 3 years
- For a smaller investment per month, get interest rates that are equal to that of regular Fixed Deposits