What is a recurring deposit (RD) and how much you can invest in it; know all in brief
Recurring Deposit (RD) is a product to provide a person with an opportunity to build up saving through regular monthly deposits of fixed sum over a period of time. Key features of the Recurring Deposits Scheme as being offered by the State Bank of India (SBI):
Recurring Deposit: Amount
a. Monthly deposits of Minimum Rs.100/- and in multiples of Rs 10/- No maximum.
Recurring Deposit: Investment Period
b. Minimum period 12 months maximum 120 months.
Recurring Deposit: Interest rate
c. Rate of interest as applicable to Bank's TDR / STDR for the period of the RD.
Recurring Deposit: Overdraft
d. Loan / Overdraft up to 90% available against the balance in RD account.
Recurring Deposit: TDS
e. Tax Deducted at Source (TDS) is applicable.
Recurring Deposit: Withdrawal
f. Premature withdrawal allowed and for this, rules for TDR/STDR is applicable.
Recurring Deposit: Nomination
g. Nomination facility available and it is advised to avail of the facility.
Recurring Deposit: Passbook
h. Passbooks are issued