An investment as small as Rs. 1000 (and in multiples of Rs. 100 there after) or as large as Rs. 1,99,99,900 per month
A minimum tenure of 6 months (and in multiples of 3 months thereafter) up to a maximum tenure of 10 years.
For a much smaller investment per month, get interest rates equal to that of regular Fixed Deposits.
Important Information
Payment of interest on Recurring Deposits
TDS will be deducted when interest payable or reinvested on RD and FD per customer across all branches,
exceed Rs.40000 (Rs.50,000 for Senior citizens) in a financial year
The interest rates for recurring deposits will be the same as the rate applicable for a simple Fixed Deposit.
With effect from Oct 24, 2015, the following changes would be applicable to all Recurring Deposits.
Interest on a Recurring Deposit will be calculated from the date the instalment is paid The method of calculation of interest on RDs
will be on Actual / Actual Quarterly Compounding.
TDS on RD is applicable as per Finance Act 2015. TDS on RD will be recovered from the linked CASA.
Payment of Installment
The installment amount once fixed cannot be altered at any later date.
In case of more than one installment being overdue at the time of payment , upto 6 installments can be
recovered from the linked account if sufficient balance is available.
If more than one installment is overdue at the time of payment, the paid installment,
if sufficient to cover only that one installment will be appropriated towards the first or earliest installment overdue.
Partial payment of installments will not be permitted.
Lock In Period
The Recurring Deposit account has a minimum lock-in period of one month.
In the case of premature closure within a month, no interest shall be paid to the depositor and only his principal amount shall be returned.
Maturity
Interest is paid only on maturity.
The Deposit shall be due for repayment and shall mature on completion of the contracted tenure, even if there are installments still to be paid.
The maturity amount mentioned on the Recurring deposit confirmation advice is subject to the payment of all installments on time
In case of any delay in the payment of scheduled installments, the maturity amount shall change
Overdue Installments
If frequent defaults (non-payments) are observed in monthly installments, and six installments fall in arrears, the Bank reserves the right to close the RD account.
The interest rate applicable on such closed accounts will be as per the premature withdrawal policy of the Bank.
