Recurring Deposit is a unique scheme having the benefits of both demand and time deposits. It is the most preferred investment scheme by the salaried/ fixed income group. In this scheme, instead of a one-time lump-sum investment, you can make a fixed monthly investment. On maturity, the Bank pays you the invested amount along with interest earned. Thus, you make equal periodic payments, and get it back with interest as a lump-sum at the time of maturity.

Major attractions of RD:

  • RD can be opened with a monthly instalment amount in multiples of Rs.1/- with a minimum instalment amount of Rs.100/-
  • Minimum period of 6 months thereafter in multiples of 3 months up to a maximum period of 120 months (10 years).The minimum tenure remains 12 months in case of NRE RDs
  • Overdraft facility up to 90 % of the outstanding balance.
  • Facility to remit instalment through internet banking or through Standing Instruction.
  • If an RD is defaulted for more than 6 months, then no further remittance will be allowed.