disciplined savings

Recurring Deposits

Build wealth progressively. Accumulate savings systematically with fixed monthly installments, guaranteed compounding interest yields, and absolute security.

Micro Investments

Start your savings journey with small monthly deposits starting from as low as ₹100 or ₹500.

Guaranteed Interest

Enjoy fixed interest rates equivalent to standard bank Fixed Deposits (FDs) compounding quarterly.

Disciplined Savings

Develop structured monthly savings habits to meet mid-term goals like travel, education, or festivals.

disciplined savings

RD Interest Compounding

Recurring deposits accumulate interest using quarterly compounding cycles. Each monthly installment behaves like a micro-deposit earning compounding returns until the final maturity date of the account.

✔ Concession rates for senior citizens
✔ Minimum tenure from 6 months
✔ Easy auto-debit setup from savings

RD Guidelines

Rules for Recurring Deposits

Setting up a Recurring Deposit (RD) involves adhering to basic guidelines on monthly installments:

Fixed Installment Amount: The amount you choose (e.g. ₹5,000/month) is locked. You cannot change this monthly commitment during the RD tenure.
Late Payment Penalties: Installments must be paid on or before scheduled dates. Missing payments triggers nominal delayed interest fees (e.g. ₹1.5 per ₹100).
Premature Closure: You can break your RD before maturity. Banks return your principal but apply a minor interest-rate penalty (usually 1%).

FAQs

Frequently Asked Questions

Find immediate answers regarding Recurring Deposits (RD).

What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a special term deposit offered by banks and post offices. It allows you to deposit a fixed sum of money monthly for a predefined tenure (ranging from 6 months to 10 years). The account pays fixed interest rates compounded quarterly.

What happens if I miss a monthly RD payment?

If you miss a monthly installment, banks charge a nominal penalty fee (usually ₹1 to ₹2 per ₹100 of the installment amount) for the delayed month. If you continuously miss payments for 4 to 6 months, the bank has the right to close the RD account prematurely.

Can I withdraw part of the money from my RD?

No, partial withdrawals are standardly not permitted on RD accounts. To access funds in an emergency, you must prematurely close the entire RD account (which incurs a minor penalty fee) or apply for a loan/overdraft against the accumulated RD value.