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How to Open a Recurring Deposit Online?

A Recurring Deposit is one of the simplest investment options available that can help investors 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.

Types of Recurring Deposit

There are mainly two types of deposit accounts that are available in India:

  1. Regular Recurring Deposit: This is the most common RD account available in banks. You have a designated tenure and a particular deposit amount, chosen by you. The deposit amount you choose cannot be changed and you have to pay the same amount for the whole tenure that you have chosen. If any deposit remains unpaid or is less, the account generally attract penalties.
  2. Flexi Recurring Deposit: Flexi plans, as the name suggests, offer you the convenience and flexibility of choosing the amount you intend to deposit in a month. There is a core amount that has to be chosen, but it can be changed based on availability of funds. The interest rates might be slightly lower for these accounts but they offer the convenience of choosing the amount based on your financial situation, throughout the chosen tenure.

Why Open A Recurring Deposit Account Online?

The major benefits of opening a recurring deposit account online are:

  • A recurring deposit account is the least hassling investment product considering that all the eligibility criteria are covered by simply having a savings account with the bank.
  • No added documentation is needed as long as you have a savings account with the bank and your net banking is activated. Hence, the whole application process can be done conveniently and efficiently.
  • You can apply online, so that you do not run to the bank for opening the account.
  • You can manage your recurring deposit account online. You can keep checking the interest you are earning online.
  • You can open the account and stay worry-free as long as you have the deposit amount in your linked bank account to pay the installment for each month’s deposit.

Top 5 Things You Need To Know Before You Open an Online Recurring Deposit

  1. 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.
  2. Only if you have registered for the Net Banking facility with your Bank, will you be able to open an RD account online.
  3. 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 them online.
  4. Make sure that the RD scheme is flexible.
  5. 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.

Steps for Opening Online Recurring Deposit Account

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 activated, log in to your account using your designated User name or ID and password in order to access your account online.
  • Choose the option that allows you 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 for 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 not only 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.

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