Recurring Deposit: Key Benefits, All Banks RD Interest Rates

• The interest is computed based on the actual number of days in a year i.e. 365 days for a non- leap year and 366 days for a leap year. The tenor of Deposit is calculated in number of days.
• In case of premature withdrawal of the recurring deposit, penalty will be applied on the applicable rate of interest for the duration which the deposit is maintained with us.
•  For delayed and/or missed monthly payment:
•     a. A Penalty on the instalment amount will be levied
•     b. This penalty will be levied on actual basis i.e. on the number of days of delay
•     c. Grace period of 5 days will be provided to the customer to make the instalment payment to avoid the penal charges
• Bank reserves the right to close the recurring deposit in case the customer misses 5 consecutive recurring deposit instalments.
• The minimum tenor of Recurring Deposit should be 6 months.
• The minimum instalment amount should be ₹ 100.
• The instalment amount should be in multiples of ₹ 100.

List of Banks Offering RD

How to Apply

• Existing customers can open Recurring Deposit through his bank Mobile Banking Application and Internet Banking.
• Visit the nearest Bank branch and open Recurring Deposit
• You can also contact your bank Customer Care Executive will fix a service appointment with our Relationship Manager to help you with the application process.

Recurring Deposit: Special Features

• Nomination facility is available so you can nominate your family members or spouse as the receiver of the final amount
• Loan facility is available up to 90% of your RD amount. Some times you bank also allows you to take an overdraft on the RD amount
• The deposit tenure ranges from 12 months to 120 months
• The minimum amount can be deposited in multiples of Rs. 100
• This service is available in every bank branch. You can visit your nearest branch to start an RD account
• TDS deductions are subject to the existing income tax rules as at the time of opening the RD account
• A penalty in case of delay in payment of an installment of RD is Rs 1.50 for every Rs. 100, per month

Documents Required to Open RD Account

Proof of Identity

• Aadhaar Card
• Passport
• PAN card
• Voter ID card
• Driving license
• Government ID card
• Photo ration card
• Senior citizen ID card

Address proof

• Aadhaar Card
• Passport
• Telephone bill
• Electricity bill
• Bank Statement with Cheque
• Certificate/ ID card issued by Post office

RD Interest Rates in India

The Recurring Deposit interest rate in India varies from bank to bank and depends on the RD scheme chosen, the tenure, and the monthly deposit amount. You may check RD Interest Rates by click on bank link provided in above table.