The market of India offers vast access to savings plans for the person interested in parking aside part of their revenue as savings. Recurring deposits are the best scheme for investing some money of their earnings. Those people can invest in RD who are getting decent Salaries and independent as well.
Benefits of RD: Why RD is an interesting investment
- RD is an easy and safe investment option in the market. If you have a savings account in the bank, you can open an RD with less documentation.
- In the case of another bank, you need more documents to open an RD, and also, you might need to open a Savings account.
- In FD Plans, Users have to invest a large fixed amount while opening the FD account. But In RD does not need a lot of money to open. You can choose a monthly small investment plan as low INR 100, using mobile banking or Net Banking.
- In an RD plan, you have to pay a monthly installment at the end of your tenure. The monthly investment amount and plan duration choose at the time of RD opening. The maximum tenure of the RD scheme is ten years.
- The best benefit of RD is that people who have lower incomes can invest in RD. They can start with the least monthly installment as low as INR 100, and they will earn the same interest rate as in FD.
- If you invest in mutual funds and stocks, there is a risk of losing money when the market value goes down. But in the case of RD, your money is safe and secure. You will get back your money with higher interest rates at the end of your RD Period.
- For short-term Investment, RD is a safe option to increase earnings.
Important Factors of RD
|Minimum Deposit||INR 10|
|Investment Period||6 months to 10 years|
|Interest Rates||4% – 7.5%|
|Partial and Mid-term Withdrawal||Not Allowed|
|Premature Closer||Allowed with penalty|
Top Banks’ Interest rates of RD
|Bank||General Citizens||Senior Citizens|
|HDFC||5.75% – 6.90%||6.25% – 7.40%|
|SBI||6.50% – 6.95%||7.00% – 7.45%|
|ICICI Bank||6.25% – 7.10%||6.75% – 7.60%|
|PNB||6.70% – 7.00%||7.20% – 7.50%|
|Axis Bank||6.50% – 7.00%||7.00% – 7.50%|
|Kotak Bank||6.25% – 6.75%||6.75% – 7.25%|
|Bank of Baroda||6.50% – 7.00%||6.50% – 7.00%|
1. Can we stop RD in between?
Ans: You can stop, but you have to pay a penalty for it.
2. What if RD is not paid on time?
Ans: Bank will penalty for the delay of monthly installment.
3. What if I break my RD before maturity?
Ans: The bank will impose a penalty on you.
4. How many RD accounts can be opened?
Ans: You can open numerous RD accounts, there is no limit.
5. Can we continue RD after maturity?
Ans: No, But you can open a new RD.