Recurring Deposit
The monthly recurring deposit (RD) system is a popular savings option offered by banks and financial institutions in India. It enables individuals to systematically save and accumulate funds over a fixed period by making regular monthly deposits into their RD account.
This disciplined approach to saving allows individuals to set aside a fixed amount of money each month, regardless of their income level, to achieve their financial goals. The monthly RD deposits earn interest at predetermined rates, compounded quarterly, thereby helping investors grow their savings steadily over time.
At the end of the RD tenure, the accumulated amount, comprising both the principal and interest, is paid out to the account holder. The monthly RD system is ideal for individuals seeking a secure and convenient way to save for future expenses, such as education, marriage, or retirement, while instilling a habit of regular savings.
Requirements to open Recurring Deposit-
Account opening form with two recent passport size photographs.
Aadhar Card
Proof of residence
Birth certificate in case of minor
Who can open the account?
Individual approved by the bank
By two or more persons in their joint names
By natural gurdian in case of minor
Co-operative societies, Trusts, Institutions, and Associations
Salient features of Recurring Deposit
Minimum Installment amount of Rs. 100/- or in multiple of Rs 100/- per month.
Minimum period of 12 months and maximum period of 10 years.
Interest amount will be paid at the time of maturity
The bank will issue a Pass Book showing the name, address, installment amount, period for which the deposit is accepted, maturity date and maturity amount.
You can access up to 90% of the deposit amount (accrued value) as a loan.