The advantage in opening a Recurring Deposit Account that the depositor would be able to save certain sums in fixed monthly instalments so that he/she would be able to meet an anticipated liability/obligation after the end of a specified period
A recurring deposit account enables an individual to deposit fixed amount every month for a pre-defined period which earns interest similar to Fixed Deposits (FD). RDs can be availed by senior citizens as well. The interest rates for senior citizens deposits are higher than the regular account.
- Any person or persons approved by the Bank.
- Co-operative Societies, Registered Trust, Institutions and Associations.
- By two or more persons in their joint names.
- By a natural guardian i.e., father or mother approved by the bank on behalf of a minor.
- Interest will be paid on the deposits at the rates in force as per the Reserve Bank’s directive from time to time.
- Interest amount will be paid at the time of maturity.
The Bank will issue a Pass Book showing the name, address, installment amount, the period for which the deposit is accepted, maturity date and maturity amount.