Recurring Deposit Account

Recurring deposits: The procedure for opening a Recurring Deposits Account is the same as in the case of saving bank account. The Recurring Deposits Account can be opened by any person either individually or jointly or by a guardian in the name of a minor. 

At the time of opening the account, the depositor is given a passbook which is to be presented at the time of depositing money Recurring Deposits Account (RD) is a term deposit account where a Customer invests a fixed sum of money per month in his Recurring Deposits Account maintained with the Bank and interest is earned as per the pre-determined rate usually the same as fixed deposit rate.

The depositor deposits a fixed amount once in a month before the 10th day of the month, or once in a month, in the account for a given period. Normally the withdrawal from such account is not permitted. However, the depositor can take a loan from the bank against the security of the Recurring Deposits Account

 These accounts can be funded by giving standing instructions by which the Bank withdraws a fixed amount on a fixed date of the month from the saving account of the Customer (as per his mandate), and the same is credited to RD account. Recurring Deposit accounts are normally allowed for maturities ranging from 6 months to10 years.

The interest earned on recurring the account is higher than on the saving account. It varies with the duration of the deposit. Currently, the rate of interest on recurring deposit account is higher than saving bank account and lower than fixed deposit account.

Recurring Deposit Account or “Account” means the account opened in the name of the depositor's and maintained by the Bank in connection with the deposits.

Account Opening Form or “AOF“ means the relationship form for recurring deposits account. An Account may be opened by one depositor or two or three depositors jointly.

 Depositor's means any person holding an account with the Bank

Deposit means the amount accumulated in the account by a monthly payment of the Instalment by the depositor/s.

Domestic Rupee Deposits mean rupee deposits maintained in India in the form of the current account, savings deposits or term deposit.

Maturity Date means the deposit shall be due for repayment on the date falling on completion of one calendar a month from the date of payment of the last Instalment or on completion of the Tenure, whichever is later.

Primary Applicant means the person referred to as the primary applicant in the AOF.

The age considered for Minor is below 18 years and for Senior Citizen is 60 years and above.

Installment means the amount specified as an installment in the Account Opening Form  or AOF, which shall be deposited recurringly by the depositor/s into the account on the specified period as agreed between the depositor/s and the Bank.

RBI” means Reserve Bank of India.

Standing Instruction/s” means any instruction given by a depositor/s, either directly or indirectly to the Bank through any mode acceptable to the Bank to transfer the Instalment from any current / savings account of the depositor/s with the Bank to the account.

Services mean the services provided by the Bank in connection with the account and more particularly described in these terms.

Statement/s shall mean the communication provided to the depositor/s on a quarterly basis stating inter alias the value of the deposit on the maturity date, the value of the deposit as on date of the communication and the rate of interest payable by the Bank on the deposit.

 Tenure means the period for which the deposit is to be maintained commencing from the date of the deposit of the first Instalment till the period as specified in the Account Opening Form or AOF.

Minimum Installment Amount

The minimum installment amount is Rs. 100 per month or 500  and multiples of Rs.100. Monthly installment amount is the amount that the Customer will deposit each month; this will be chosen at the time of account opening and will be fixed for the tenure of the RD. The depositor/s shall, at the time of opening the account, stipulate the installment and the total number of installments to be payable. The installment and the number of installments cannot be altered subsequently.

 Website refers to the website owned, established and maintained by the

Bank at the Click on Any bank site and know about Recurring Deposits Account