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What is a recurring deposit (RD) and how much you can invest in it; know all in brief

Feb 06, 2019, 10:03 AM IST
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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):

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Recurring Deposit: Amount

Recurring Deposit: Amount

a. Monthly deposits of Minimum Rs.100/- and in multiples of Rs 10/- No maximum.

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Recurring Deposit: Investment Period

Recurring Deposit: Investment Period

b. Minimum period 12 months maximum 120 months.

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Recurring Deposit: Interest rate

Recurring Deposit: Interest rate

c. Rate of interest as applicable to Bank's TDR / STDR for the period of the RD.

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Recurring Deposit: Overdraft

Recurring Deposit: Overdraft

d. Loan / Overdraft up to 90% available against the balance in RD account.

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Recurring Deposit: TDS

Recurring Deposit: TDS

e. Tax Deducted at Source (TDS) is applicable.

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Recurring Deposit: Withdrawal

Recurring Deposit: Withdrawal

f. Premature withdrawal allowed and for this, rules for TDR/STDR is applicable.

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Recurring Deposit: Nomination

Recurring Deposit: Nomination

g. Nomination facility available and it is advised to avail of the facility.

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Recurring Deposit: Passbook

Recurring Deposit: Passbook

h. Passbooks are issued

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