Recurring Deposit

If you are wondering what is RD?, read on to understand all the aspects of recurring deposits. RD deposits provide its consumers with high flexibility, wherein an amount of their choice can be invested every month. Recurring deposit accounts are offered by a majority of Non-Banking Financial Companies (NBFCs) and banks, with the tenure ranging from 6 months to a decade.

The rate of interest offered by banks on a recurring deposit account depends on factors like the tenure you choose. Most banks offer senior citizens a high-interest rate compared to regular citizens. Various RD investment schemes are available today, inclusive of special schemes offered by banks, to aid you in achieving your financial goals. The returns on an RD account can range from 4 per cent to 6.5 per cent.

• All minors above the age of 10 years are allowed to open an RD account. The only requirement is proof of the name.
• A minor below the age of 10 years or equal to the age of 10 under the guardianship of a local guardian is also eligible
• A commercial organization, proprietorship, company, or a corporate is also eligible.
• Any government organization.

The documents required to open a recurring deposit account are as follows:

A Recurring Deposit can be easily closed through offline method, net banking or mobile banking. You need to be physically present at the bank branch and submit a closure request for the RD account in case of the offline method.

At maturity, the recurring deposit can be directed towards withdrawal or renewal. The clause for renewal is available on the auto-renewal feature, where the financial institution or the bank will automatically renew the deposit for the same period and at the same interest rate. RD renewals are a great option if you have invested funds without a particular unforeseen need.