Recurring Deposit
Build a disciplined savings habit with consistent growth
Recurring Deposit schemes aim at inculcating a regular habit of saving in people.
The minimum period of deposit is 12 months, while the maximum period of a deposit is 10 years.
The rate of interest is equivalent to that offered for a Fixed Deposit. Therefore, the interest rates are higher than Savings accounts.
Premature withdrawals are allowed however, at the discretion of the bank, they may allow you for foreclose of your account before the maturity period on certain conditions.
A Recurring Deposit can be funded periodically through Standing Instructions that are usually instructions given by the customer to the bank, to credit the RD account every month from his/her Savings or Current Account.
Deposit upto 5 Lakh inclusive of Interest Per Person is insured with DICGC (Deposit Insurance Credit Guarantee Corporation).
