Stepwise Guide to Paying Recurring Deposits Online

Internet Banking 

Here are the steps to pay RD through internet banking: 

1. Log in to your bank’s internet banking 

1. Under Deposits select ‘Recurring Deposit’ 
2. Create RD by entering the required details such as tenure, monthly deposit amount, category, etc. 
3. Click on ‘I Agree’ and ‘Submit’ 

The online request will be processed, and an email will be sent to your registered email address. The first installment will be paid via internet banking, and the rest get auto debited from the account monthly. 

Mobile Banking 

Most banks offer online RD payment through the bank’s mobile banking service. Here is how to do it: 

1. Log in to your bank’s mobile banking application 
2. Select the ‘Recurring Deposit’ option 
3. To open a new RD account, enter the required details 
4. Mention the tenure and monthly deposit amount 

1. Select the category-General public or Senior citizen 
2. Create the RD account and pay the first installment via mobile banking 

The user gets an intimation on their registered email address and mobile number as soon as the online RD request gets processed. The monthly deposit gets auto debited after the first installment until the last month of the RD tenure. 

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SMS Banking 

Some banks offer an opportunity to book RD via SMS. Customers need to send an SMS mentioning the amount and tenure to a specific number in a particular format as directed by the bank. The RD booking will take place only from the mobile number of the customer registered with the bank. 

Direct Account Debit 

The rules for opening recurring deposits vary from one bank to another. For most banks, the customers need to have a savings bank account with a minimum balance so that the RD amount gets debited directly from the account. Once the online request gets processed and the customer authorizes the bank to make a debit, paying recurring deposits online becomes seamless and hassle-free. 

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Ways to make RD online payment

RD accounts can be opened and operated online effortlessly. The following are the ways to make your RD online payment: 

FAQs on How to Make Recurring Deposit Online Payment

• What is the maximum tenure for an RD?

  An RD can be opened for a maximum tenure of 120 months (10 years), but the tenure cannot be changed once the RD has been opened. 

• Can I update the nominee for my RD account through the bank's SMS facility?

  Some banks do not offer a nominee update facility through SMS. You need to get in touch with the bank representatives or check out the bank’s official website for more information. 

• Can I check the interest rate before booking my RD online?

  Yes, you can check the current interest rate before booking your RD online. Be it internet banking or mobile banking, you can check the rates for normal and senior citizens before investing. But for booking RD via SMS, make sure to verify the rates from the official website. 

• Is there any chance of missing out on the monthly installments for online RDs?

  No, payment never gets missed for online RD. The bank auto debits the amount from the customer’s account and does not involve any manual intervention. 

• If I have multiple accounts, can I book RD via SMS from any account of my choice?

  No, you cannot book from any account as per your preference. RD booking via SMS can be done only for those accounts that are registered for SMS banking. 

• Can I prematurely liquidate my recurring deposit online?

  Yes, you can liquidate your RD prematurely through online mode by logging into your internet banking or mobile banking using your login credentials. The amount along with the interest (if applicable) gets credited to the customer’s account which is linked with the RD. 

• How many RDs can I open online?

  You can open as many RD accounts online as possible unless otherwise specified by the bank. But the interest earned on every RD created will be taxable and should not exceed Rs.2.5 lakh for the general category and Rs.3 lakh for senior citizens. 

• Is there a monthly or quarterly interest payout option for RD?

  A monthly or quarterly interest payout option is generally not available for recurring deposit schemes, unlike fixed deposits. Check with the bank’s official website to get more details about interest payout options.