How to Modify RD Amount or Tenure – A Complete Guide
Modifying your RD amount or tenure provides the flexibility to align your savings with your evolving financial goals. With flexible RD schemes, you no longer need to close your deposit or lose earned interest - you can simply adjust the plan to suit your needs.
Recurring Deposits (RDs) are one of the most popular savings instruments in India, helping investors build a disciplined savings habit. However, life situations may change—leading to a need for adjusting your monthly RD installment or tenure. The good news is that many banks and financial institutions now offer flexible RD schemes that allow modifications even after account setup.
What Is a Flexible RD Scheme?
A Flexible Recurring Deposit (Flexi RD) is a modern savings plan that allows investors to change their monthly installment amount or tenure as per their financial situation. Unlike traditional RDs, where the amount and duration remain fixed, flexible RDs let you increase or decrease your monthly deposits within a specified range.
Benefits of Modifying RD Amount or Tenure
- Adapt to Financial Changes: Adjust contributions based on income fluctuations.
- Avoid Penalties: Modify tenure instead of breaking the RD prematurely.
- Better Returns: Maintain continuous saving habits while optimizing interest earnings.
- Convenience: Manage modifications easily via online or mobile banking portals.
When You Can Modify Your RD
- If your bank offers a Flexi RD or Smart RD plan.
- If modification is allowed after the initial lock-in period (usually 6 months).
- When you wish to extend tenure to earn higher interest.
- When your income changes and you want to increase or reduce the monthly amount.
Step-by-Step Process to Modify RD Amount or Tenure
1. Check RD Type
Confirm whether your RD account supports modifications. Traditional RDs generally don’t allow mid-term changes.
2. Log In to Net Banking or Mobile App
Most banks enable RD modification under Deposit Services → Modify RD → Change Installment/Tenure.
3. Choose Desired Change
Select whether you wish to:
- Modify the installment amount, or
- Extend or reduce the tenure.
4. Review Interest Rate Impact
Changes may affect the applicable interest rate. Banks often recalculate based on the modified tenure.
5. Submit Request and Verify
Authenticate through OTP or password. Once confirmed, your new RD terms will reflect in your account summary.
6. Offline Option
Visit your branch with an RD modification form, passbook, and valid ID proof if online modification isn’t available.
Tips Before Modifying Your RD
- Review premature withdrawal policies.
- Compare revised RD interest rates.
- Keep documentation of modification confirmation.
- Avoid frequent changes—it may affect compounding benefits.
Important Points to Remember
- Not all RDs allow modification — check scheme eligibility.
- Some banks may charge a nominal processing fee.
- Interest rate may remain the same or be revised as per the new term.
- Modifications are typically allowed once or twice during the RD period.
- Premature closure is different from modification — review both options carefully.
Benefits of Flexible RD Schemes
- Customizable investment options.
- Better liquidity management.
- Continued savings discipline.
- Ideal for variable income earners.
- No need to close and restart the RD.
FAQs on How to Modify RD Amount or Tenure
- Can I change my RD amount after starting it?
Yes, if your bank offers a flexible RD scheme, you can increase or decrease your monthly installment within the allowed range.
- Will modifying my RD affect the interest rate?
It depends on your bank’s policy. Some banks keep the original rate, while others apply the rate applicable on the modification date.
- Can I extend the tenure of my RD?
Yes, you can extend the RD tenure before maturity through online banking or by visiting your branch, subject to your bank’s approval.
- Is there any fee for modifying RD details?
A few banks may charge a small administrative fee for modification requests.
- Can I shorten the RD tenure if I need funds earlier?
Yes, some banks allow tenure reduction, but it might affect your interest earnings. Confirm with your bank before proceeding.
- What happens if I miss an RD installment after modification?
A penalty may apply for missed installments, similar to regular RDs. Always maintain sufficient balance.
- Is flexible RD available in all banks?
Not all banks offer flexible RD schemes. It’s available in select banks and financial institutions that support RD customization.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2026 BankBazaar.com.