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  • Long Term Recurring Deposit

    Planning on making a start on those financial planning resolutions? No matter what the amount, financial planning reaps big dividends in the long run, even if you’re starting out with a measly Rs.100 a month. Putting that Rs.100 every month into a recurring deposit would help you save big and earn from those savings. How, you might ask?

    A recurring deposit is a financial tool where investors deposit a predetermined fixed sum of money each month for a predetermined period of time. On maturation of that period, the entire lump sum along with interest is handed back to the investor.

    A recurring deposit works similar to a fixed deposit, where investors earn through their deposits.

    The difference between the two is a fixed deposit requires you to deposit a large sum of money all at once, whereas a recurring deposit requires you to make monthly instalment payments for a certain period of time.

    The interest earned through a recurring deposit is the same as that earned through a fixed deposit, thus making it a good way to start saving and building capital.

    Recurring deposits can be short term as well as long term.

    A long term recurring deposit can run up to a maximum of 10 years, with the interest on the principal compounded each quarter.

    Planning For Your Short Term Goals Through Long Term Recurring Deposit

    A recurring deposit is a good way to save up for any financial goals you may have. As a fixed amount is being deducted from your bank account each month, the onus of saving a portion or setting money aside is already taken care of.

    As you can choose the amount you wish to deposit into the recurring deposit account every month, you have the flexibility of setting an amount of your choice. in the case of meeting a long term financial goal, you can break up a large investment into smaller parts through monthly deposits.

    For example, if you are saving for your child’s higher education or a related expense, you can calculate an approximate amount you will require and plan your recurring deposit accordingly. As you would also have more immediate expenses, selecting a long term recurring deposit would be a good idea as you can start saving a small amount from the beginning. You can select a tenure up to a maximum of 10 years, at the end of which you will receive not only the principal but also the accrued interest, making for a significant amount.

    Tenure and Minimum Amount for Long Term Recurring Deposits

    A long term recurring deposit has a maximum tenure of 10 years as per banking guidelines. A long term recurring deposit is usually over 5 years, compared to the regular recurring deposits, which range from 3-5 years.

    A long term RD keeps your money locked for the duration of the deposit, which is why you should plan wisely since the penalties associated with a premature withdrawal are quite steep.

    Another point to keep in mind is ensuring you have sufficient funds in your account, as the predetermined amount will be deducted on a fixed day each month. In case of fund shortage, most bank levy a late payment charge which varies.

    Different banks have different rates regarding the minimum deposit amount for a long term recurring deposit. For example, some banks have a minimum deposit amount of Rs.10, whereas it is Rs.100 for others. All banks stipulate that amounts have to be in multiples of Rs.100 over and above the minimum deposit.

    Eligibility Criteria For Long Term Deposit

    Individuals looking to open a recurring deposit have to meet certain eligibility criteria as laid down by each bank.

    Most banks would require individuals to open a savings account with them so that transferring the interest amount is easy and hassle free for the individual.

    Apart from eligibility criteria, there are certain documents to be submitted to the bank to when applying for a recurring deposit. The list of documents is given below:

    • Proof of identity.
    • Proof of address.
    • Passport sized photographs.

    Long Term Recurring Deposit Interest Rates

    Long term recurring deposits are offered by a number of banks, with each bank offering a different interest rate depending on the deposit tenure. The below table mentions a few of these rates for specific tenures for both regular deposits as well as the those opened by senior citizens:

    Long Term Recurring Deposit Interest Rates (Calculated At % P.A.)

      ICICI Bank SBI HDFC Axis Bank
    Tenure Reg Sr Cit Reg Sr Cit Reg Sr Cit Reg
    3-5 years 7.50 8 7 7.25 7.50 8 7.50
    Above 5 years – 8 years 7.25 7.75 7 7.25 7.25 7.75 7.25
    8 years – 10 years 7.25 7.75 7 7.25 7.25 7.75 7.25

    Please Note: the rates mentioned above are as per the information available on August 3rd, 2016. Please check with the bank for any changes/modifications in the rate at the time of application.

    As given above, a long term recurring deposit offers reasonable interest rate and can be considered a good first step or addition to anyone’s financial planning portfolio.

    Recurring Deposit by Banks
    Recurring Deposit by other Institutions

    RD Reviews

  • Page 1 of 45 1 2 3 4 5
    • IOB Recurring Deposit
      "Not Responsive"
      INDIAN OVERSEAS BANK
      0.5 2.0/5 "Expected more"
      Monthly payment will be 4000 for recurring deposit account with Indian Overseas Bank. Tenure period is 52 months. It will be completed by this year, but I am not interested to reopen the account with IOB because their responses are not good. They are not so responsive hence I am not interested to reopen recurring deposit after the completion.
      Was this review helpful? 1
      , bhiwadi
      Reviewed on May 25, 2017
    • SBI Recurring Deposit
      "Good Service"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      I have Recurring deposit account with State bank of India. I opened this account long bank. Monthly payment is 6000 with the tenure of 18 months. I had started this account in 2012 and still continuing the same account with SBI. Services are good.
      Was this review helpful? 2
      , bhiwadi
      Reviewed on May 25, 2017
    • Kotak Recurring Deposit
      "Good "
      KOTAK MAHINDRA BANK
      0.5 4.0/5 "Great!"
      I am having recurring deposit account with the Kotak mahindra bank and the interest rate is around 6.79%, which is not really okay. Total tenure is for one year of time. Customer service is good one with them and the response is also a good one. There is no option to withdraw the money in between the tenure.
      Was this review helpful? 2
      , bangalore
      Reviewed on May 18, 2017
    • HDFC Bank Recurring Deposit
      "Better "
      HDFC BANK
      0.5 4.0/5 "Great!"
      I had closed the recurring deposit account with the HDFC bank and the services offered by them was exemplary. Rate of interest is a nominal one with them and the lock in period was around one year of time. There were no penalty charges absolutely for the premature withdrawal. On top of all that, Customer service provided by HDFC Bank is really fantastic.
      Was this review helpful? 2
      , pune
      Reviewed on May 18, 2017
    • HDFC Bank Recurring Deposit
      "Conveneint saving process"
      HDFC BANK
      0.5 4.0/5 "Great!"
      HDFC Recurring deposit interest rate is low, I should deposit the amount of Rs.5000 every month for RD account its for the period of 15 months. Initially HDFC were providing the interest rate of 6.9% now it got less . But I am sure they will be providing assured interest rate.
      Was this review helpful? 2
      , faridabad
      Reviewed on May 15, 2017
    • ICICI Bank Recurring Deposit
      "Safety locker"
      ICICI BANK
      0.5 4.0/5 "Great!"
      I hold a recurring deposit with ICICI bank and I got it around 6 months ago. I get good benefits with this very good savings plan. It is flexible because when I need in money anytime, I can with draw and I can switch the amount to savings account, Which is helpful for the safety purposes. The rate of interest I am getting is nominal here.
      Was this review helpful? 1
      , mumbai
      Reviewed on May 15, 2017
    • HDFC Bank Recurring Deposit
      "Services are excellent"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I had closed the recurring deposit account with the HDFC bank and I had it for a period of one year of time. Interest rate was very minimal at that time. Net banking facilities are nice one and also its easy to track the account, also its really pretty fast to open this HDFC account.
      Was this review helpful? 2
      , mumbai
      Reviewed on May 10, 2017
    • ICICI Bank Recurring Deposit
      "Very good services in deposit"
      ICICI BANK
      0.5 4.5/5 "Excellent!"
      I am having the recurring deposit account with the ICICI bank and the interest rate was around 7% per annum. Services were good and I would like to say for deposit ICICI bank is up to the mark. Its easy to track the account through online and mobile application.
      Was this review helpful? 5
      , hyderabad
      Reviewed on May 10, 2017
    • Bank of Baroda Recurring Deposit
      "Good Bank"
      BANK OF BARODA
      0.5 5.0/5 "Blown Away!"
      I had Recurring Deposit account with Bank of Baroda. RD period was one year and every month I used to pay 2500 rupees. The interest rate was around 6% which is the same like other banks I believe. At the end of the year, they were able to release the amount on time.
      Was this review helpful? 2
      , hyderabad
      Reviewed on May 09, 2017
    • Bank of Baroda Recurring Deposit
      "Nice Bank"
      BANK OF BARODA
      0.5 5.0/5 "Blown Away!"
      Recently I invested in Recurring Deposit account with Bank of Baroda. The monthly payment was around 1000 rupees, therefore they did not deduct anything from my salary account. The tenure period is for five years. After five years, they would return my money 86000 rupees. Interest rate provided by them is very much nominal.
      Was this review helpful? 1
      , bangalore
      Reviewed on May 09, 2017
    • Dena Bank Recurring Deposit
      "Smooth services"
      DENA BANK
      0.5 5.0/5 "Blown Away!"
      I have opened a recurring deposit at Dena bank and I would give them five stars on this experience. It was not a long process to get this account done and the rate of interest they offer on this facility is good. There are no charges as well. In all a nice experience.
      Was this review helpful? 1
      , mysore
      Reviewed on May 08, 2017
    • IDBI Recurring Deposit
      "Satisfactory Service"
      IDBI BANK
      0.5 4.0/5 "Great!"
      As my salary account is with IDBI bank, based on it I opened recurring deposit account. I had opened this for one year. They offered good interest rate for my RD account. I have ecs mode of payment as my salary account is with the same bank.
      Was this review helpful? 2
      , indore
      Reviewed on May 04, 2017
    • YES Bank Recurring Deposit
      "Delayed Response"
      YES BANK
      0.5 3.0/5 "Satisfactory"
      The only problem with Yes bank is always they provide delayed response to the customers. I have recurring deposit account with them. Whenever I step in the bank, I have to wait for a long time to be addressed. I used to visit every month as I have to pay some amount for my RD account. Otherwise the services are good.
      Was this review helpful? 1
      , indore
      Reviewed on May 04, 2017
    • Kotak Recurring Deposit
      "Better Response"
      KOTAK MAHINDRA BANK
      0.5 3.0/5 "Satisfactory"
      For my recurring deposit account , I pay thousand rupees every month for one year with Kotak mahindra. I will get some good amount at the end of the year with good interest. Customer service is not that much good but it is better. They are giving response whenever I approach them.
      Was this review helpful? 1
      , indore
      Reviewed on May 04, 2017
    • SBI Recurring Deposit
      "Good Service"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I have recurring deposit account with State bank of India. The period is for one year and the deposit amount is for thirty five thousand. I am satisfied in opening RD account with SBI, because the interest rate is quite good with them than other banks.
      Was this review helpful? 6
      , indore
      Reviewed on May 04, 2017
    • Punjab National Bank Recurring Deposit
      "Satisfactory Service"
      PUNJAB NATIONAL BANK
      0.5 5.0/5 "Blown Away!"
      I had opened Recurring Deposit with Punjab National Bank. The loan amount is thirty five thousand and the tenure period is for one year. Every month I regularly depositing the money on a monthly basis. The customer service is quite satisfactory and there is no constrains with the bank on my FD. I am very much satisfied with PNB.
      Was this review helpful? 2
      , indore
      Reviewed on May 04, 2017
    • ICICI Bank Recurring Deposit
      "Amazing experience"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      Interest rate with the ICICI bank for the recurring deposit was around 7% to 7.5% and am with them from the last five to six years of time. Minimum lock in period is nil and maximum is around ten years of time. There will be nil penalty for withdrawing the money duriong prematurity period. Netbanking services are fine with the ICICI bank.
      Was this review helpful? 1
      , faridabad
      Reviewed on Apr 22, 2017
    • HDFC Bank Recurring Deposit
      "Good RD"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      Even my HDFC RD is good. Even for this I got a call from HDFC bank I gave my confirmation for the same. They had deducted the amount from my savings account and every month it keeps deducting from my account. I do have access to online facilities too.
      Was this review helpful? 3
      , kolkata
      Reviewed on Apr 20, 2017
    • ICICI Bank Recurring Deposit
      "Best one"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      I have recurring deposit account with the Oriental bank of commerce and the interest rate is around 8.75% and its only for employee. There is no penalty charges and am having this account from the last two years of time and the tenure is around five years of time , also it can even open for seven days of time.
      Was this review helpful? 1
      , ghaziabad
      Reviewed on Apr 19, 2017
    • IDBI Recurring Deposit
      "Good. Can be more conveneint "
      IDBI BANK
      0.5 3.0/5 "Satisfactory"
      I had taken a recurring deposit with IDBI. To open this account I had an option to easily do it online. But at the time of closing it, it is a hectic process where I need to visit the bank and finish the formalities. There were no charges taken. The amount gets credited to my savings account without any delay.
      Was this review helpful? 2
      , bangalore
      Reviewed on Apr 08, 2017
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