Recurring Deposits

 Recurring Deposit is a special type of deposit account which enables a depositor particularly in fixed income group to save by paying into the account an agreed fixed sum of money monthly over a stipulated period. The deposits in this type of account earn compound interest on quarterly basis. Longer the period for which monthly deposits are agreed to be made higher is the rate of interest subject to rules.

Instalments of any calendar month should be paid on or before last working day of that calendar month and if it is not so paid penalty will be charged on the instalments in arrears at the following rates.

However, the maturity proceeds of the deposit shall be paid on the date of Maturity or on completion of 1 month from the date of last instalment paid, whichever is later.

TDS is applicable in these accounts

Eligibility: Only individuals are eligible to open accounts under the scheme. Thus, the Recurring Deposit Accounts can be opened in the names of:

1. Individual — Single Accounts
2. Two or more individuals — Joint Accounts
3. Illiterate Persons
4. Blind Persons
5. Minors
1. Nomination facility is available to these deposit accounts
2. Initial Deposits: Minimum Rs. 100/- and multiples of Rs. 10/- and there is no maximum limit.
3. Loan/Overdraft up to 85% available against the balance in Recurring Deposit account.

Recurred Deposits Interest Rates:

Penalties:

Premature closure of Deposit allowed at 1%below the rate applicable for the period the deposit remained with the bank.