A Recurring Deposit is one of the simplest investment options available that can help the investors to earn a high Return on Investment or ROI by making regular payments of a stipulated amount of money over a specific period of time. By holding an RD account, the customer can be assured of regular income earned as savings, which will be paid out along with the principal amount invested in the account, after the maturity period. There are various methods of opening an RD account in a Bank of your choice, one of which is opening a Recurring Deposit (RD) online. This is the most convenient and hassle-free method of opening an RD account.
In order to open a Recurring deposit online, you need to have activated the Net Banking facility in the Bank where you hold an account. Only if you have registered for the Net Banking facility with your Bank, will you be able to open an RD account online. In most banks it is mandatory that you should have a savings account with the Bank in order to be able to open an RD account with the Bank online. If you do not have a Net Banking facility enabled on your banking account, you can do so by getting in touch with the Bank and filling out a Net Banking registration form.
Once your Net Banking is enabled, you have to log in using our unique Username/ ID and password in order to access your accounts online. Choose the option available to open an RD account. While opening a Recurring Deposit account online, you will be required to provide details such as the amount which you wish to deposit each month and the Tenure of Deposit , i.e, the period to which you wish to hold your Recurring Deposit scheme active.
Once this is completed, you have to link your savings account to this account from which you can transfer the required funds to the account regularly but also opt to place a standing instruction mandate to make the payment automatically, by the due date each month. Some of the key factors that you have to keep in mind about opening a Recurring Deposit account online are: find out if the RD scheme is flexible or regular, interest rate applicable on the scheme, method of interest calculation (whether it is compounded interest, etc.), nomination facility, and so on.
The Net Banking layout and RD opening terms and conditions of each Bank might slightly vary. Hence, it is advisable to get in touch with your Bank to know more about opening an RD account online in that Bank.
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