Recurring Deposit
A Recurring Deposit A/C is a basic monthly saving plan that allows customers to save money over a specified period.
It is the most preferred investment plan by the salaried/ fixed income individuals.
Customers can choose the tenure of the deposit and the monthly payment amount as per their convenience.
These accounts are a great place for your emergency fund.
These accounts can be funded through Standing Instructions by the customer
to the bank where they have a Saving Account or Current Account. The interest earned gets
credited automatically to your account every year on quarterly basis.
Features of Recurring Deposit Account:
1.Open an RD account by investing a minimum of Rs.100 per month.
2. RD accounts offer an interest rate higher than that of a savings account.
3. A single account holder can open any number of RD accounts.
4. Set standing instructions so that the instalments are automatically deducted from your savings account without the need for manual interaction.
5. Senior citizens may get an additional 0.5% interest rate.
6. RD accounts can be opened in the name of minors; however, only under the supervision of parents/guardians.
7. Banks also send transaction alerts to their customers via SMS as a part of SMS banking services.