Recurring Deposits: Recurring Deposits refer to the opportunity availed through the financial institutions that enable an account holder to deposit a fixed sum of money every month for a predetermined time period. The lower limit for the deposit amount is Rs.100 and the tenor can go up to ten years. Premature withdrawal of the account is permitted by many banks, however, partial withdrawals will not be sanctioned. Other banks only allow individuals with a savings account within the bank to open an RD account. PAN card might be a prerequisite for many banks to open an account as well. The interest income can only be received upon maturity. TDS is applicable to the account as per Section 194A of the Income Tax Act. HDFC and Kotak Mahindra do not let the account holder to modify the prearranged terms of installment and tenor. Banks like HDFC do not pay interest to the account holder if the account is prematurely closed within one month of the lock-in period.