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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 48 1 2 3 4 5
    • Bank of Maharashtra Recurring Deposit
      "Good Saving for Future"
      BANK OF MAHARASHTRA
      0.5 5.0/5 "Blown Away!"
      I directly visited to the Bank of Maharashtra for the RD opening, they are customer friendly. They updates everything on time, monthly I pay Rs. 7000 it has the term for 5 yeas. Then I will 9.2% of interest. Its been 10 years I am continuing with them.
      Was this review helpful? 0
      , kolkata
      Reviewed on Dec 05, 2017
    • HDFC Bank Recurring Deposit
      "RD services are good"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      The Recurring Deposit with HDFC came in after years of relatioship with this Bank. They have good return promised and the trust over them is high. You can easily close the account whenever you want and the amount would be disbursed immediately to your account. The netbanking facility can make things happen easily.
      Was this review helpful? 0
      , new delhi
      Reviewed on Dec 01, 2017
    • HDFC Bank Recurring Deposit
      "Excellent service"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I have opened a Recurring deposit.I have been banking with them for last one year.The rate of interest is 6.67% ,its beneficiary to the customer.I maintain a minimum balance of Rs 5000.Net banking is convenient to use.The phone banking service is comfortable to use.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 28, 2017
    • SBI Recurring Deposit
      "Good"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I have my car loan with SBI 3 years . The loan amount was5 lakhs and the rate of interest was 9.8% which was satisfactory .The customer service and responses was good . The pre closure is after 1 year and the processing fee was 1100. My overall experience was good.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 20, 2017
    • HDFC Bank Recurring Deposit
      "Good Service"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I have most of my banking products with HDFC bank. As I'm an employee as well as I liked HDFC bank's services I decided to start a reccurring deposit for my future savings with HDFC bank itself. If we book recurring deposit through online then we will get offers some like free deal, provogue bags or watches, vouchers. Annually I pay Rs. 3000 and I get an interest of 7.75%.
      Was this review helpful? 0
      , jammu
      Reviewed on Nov 20, 2017
    • ICICI Bank Recurring Deposit
      "Great banking service"
      ICICI BANK
      0.5 4.0/5 "Great!"
      It was almost seven years now with the ICICI bank on recurring deposit. The website was very good where I can get my statement. Android app could be better. I pay monthly around 8K via online banking. I like them for the service since I maintained my saving and salary account. The things could have been better with respective of email intimation.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 18, 2017
    • SBI Recurring Deposit
      "Good service"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      As I'm a long time customer with State bank of India for around 12 years and as I liked their banking services so I started a recurring deposit with State bank of India 5 years ago. I pay Rs. 3000 monthly and keep on renewing it after every year when the tenure ends.
      Was this review helpful? 2
      , faridabad
      Reviewed on Nov 18, 2017
    • IDBI Recurring Deposit
      "Average service"
      IDBI BANK
      0.5 3.0/5 "Satisfactory"
      I have a savings account with IDBI bank for the past 5 years. As a long time customer with IDBI bank I trusted them and invested some money recurring deposit with IDBI itself. I renew this recurring deposit account every year. I get a interest of 7% which is very less.
      Was this review helpful? 0
      , delhi
      Reviewed on Nov 17, 2017
    • SBI Recurring Deposit
      "Good service"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      As I have a savings account with State Bank of India I started a recurring deposit account with them. But I'm really not sure about the interest rates they provide me but it's good for both my RD accounts in this State bank of India as well as the other bank IOC.
      Was this review helpful? 0
      , kolkata
      Reviewed on Nov 17, 2017
    • Kotak Recurring Deposit
      "Satisfactory & happy"
      KOTAK MAHINDRA BANK
      0.5 4.5/5 "Excellent!"
      They are giving 6% interest rate for the Recurring Deposit. It was a very good service with Kotak. The request has been placed online. I have chosen Kotak because they are giving more benefits and high potentials. The customer service and response is good.
      Was this review helpful? 1
      , kolkata
      Reviewed on Nov 16, 2017
    • SBI Recurring Deposit
      "Excellent in service , hike in interest rate"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I have invested in recurring deposit and the return value is good based on the pre tax which was levied and it was levied based on certain circumstances. I would like to say that the customer service is good one with them, also I really dont have any issues on it.
      Was this review helpful? 1
      , bangalore
      Reviewed on Nov 16, 2017
    • Tamilnad Mercantile Bank Recurring Deposit
      "Excellent "
      TAMILNAD MERCANTILE BANK
      0.5 4.5/5 "Excellent!"
      The rate of interest is higher for RD with Tamilnad Mercantile Bank compared to others, I will get a good return. I pay 2000rupees per month.The statements will be sent out to my mobile number or email address . For the maturity period they will inform the customer 1 week before. Manager will call the customer directly. There is no compulsion for the customer it is based up on their own interest. It is a tenure of 7 years.
      Was this review helpful? 0
      , madurai
      Reviewed on Nov 13, 2017
    • HDFC Bank Recurring Deposit
      "Secure Deposit"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I have taken a recurring deposit with HDFC bank. The total tenure for this deposit is for 60 months. They have given a rate of interest of 7.90% and now its lowered to 6.75 percentage. Monthly from my HDFC savings account they will deduct that amount.
      Was this review helpful? 0
      , chennai
      Reviewed on Nov 08, 2017
    • Vijaya Bank Recurring Deposit
      "Excellent"
      VIJAYA BANK
      0.5 5.0/5 "Blown Away!"
      I had a recurring deposit from Vijaya Bank and the process for that was also good. I have no hassles with the bank as they have always been proper in their response to the customer. The benefits of this account is also fine and I no longer use the account. I have closed it.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 06, 2017
    • ICICI Bank Recurring Deposit
      "Excellent service"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      I never find any difficulty with my ICICI requiring deposit service I am using ICICI mobile application so the every transaction will be done through online so I don't need to contact their branch or their staffs their mobile application is very easy to use and user friendly it was totally a good experience with ICICI.
      Was this review helpful? 0
      , chennai
      Reviewed on Nov 01, 2017
    • Syndicate Bank Recurring Deposit
      "Good Service"
      SYNDICATE BANK
      0.5 4.0/5 "Great!"
      As I have a savings account with SYNDICATE BANK I started a recurring deposit account also with them. I have been holding this recurring deposit account for the past 8 months. I pay Rs. 500 for this recurring deposit account. I get an interest of around 8%.
      Was this review helpful? 0
      , guntur
      Reviewed on Oct 31, 2017
    • SBI Recurring Deposit
      "Not a good investment"
      STATE BANK OF INDIA
      0.5 2.0/5 "Expected more"
      I created this Recurring Depoist account some time back and the return I got was little disappointing. I had paid Rs.10000 every month and was expecting a 7.25% Interest. But at the end, after the cut of all taxes I recieved only 4.5% profit, which for me is pure waste of investment.
      Was this review helpful? 1
      , ghaziabad
      Reviewed on Oct 29, 2017
    • HDFC Bank Recurring Deposit
      "Good Service"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I have my salary account with HDFC bank so I thought of holding a Recurring deposit account with them as their services are good. Now I have been holding a Recurring deposit account with them for the past 1 year. I remember for the last 6 months I'm paying between Rs. 1000 to Rs. 2000 monthly. They give me 5.25% as interest.
      Was this review helpful? 0
      , new delhi
      Reviewed on Oct 28, 2017
    • HDFC Bank Recurring Deposit
      "Good Saving"
      HDFC BANK
      0.5 4.0/5 "Great!"
      Holding Recurring deposit account with HDFC, I used to pay Rs. 3000 on every month, it has tenure of one year, But the interest rate is very low like the banks norms. I think HDFC Is providing 6% of interest for the RD account, I am using it only for the investment purpose.
      Was this review helpful? 0
      , pune
      Reviewed on Oct 25, 2017
    • HDFC Bank Recurring Deposit
      "Very good account"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      HDFC Bank is my corporate account and my salary account is with HDFC. The reason why I had chosen HDFC for the Recurring Deposit was because of the interest rate which is 6% and it is the best and we have to pay monthly 1200 . This Recurring Deposit request was placed online. I can also view my maturity instructions online
      Was this review helpful? 0
      , new delhi
      Reviewed on Oct 17, 2017
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