Whoever said wishes don’t come true hasn’t explored our offers!
  • 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 46 1 2 3 4 5
    • Corporation Bank Recurring Deposit
      "Better interest rate for recurring deposit"
      CORPORATION BANK
      0.5 3.0/5 "Satisfactory"
      I am having recurring deposit account with the Corporation bank and its the nationalized bank, so their services are not up to the mark, also they have to be get improved. Branch response is a better one with them and the online banking services are working up to the mark.
      Was this review helpful? 0
      , pune
      Reviewed on Jun 24, 2017
    • Corporation Bank Recurring Deposit
      "Super"
      CORPORATION BANK
      0.5 5.0/5 "Blown Away!"
      I am having recurring deposit account with the Corporation bank for some long time. Online banking service is good one and I need to pay around 1000 Rupees per month for ten years of time, also it used to debit as ECS. Branch employee are providing good response to the customer.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 24, 2017
    • Indian Bank Recurring Deposit
      "Average "
      INDIAN BANK
      0.5 3.0/5 "Satisfactory"
      With the Indian bank , I do have the recurring deposit and the account got opened on immediate basis. Premature withdraw charges are applicable with them for the deposit. Online banking services are good one with the Indian bank.
      Was this review helpful? 2
      , chennai
      Reviewed on Jun 22, 2017
    • Axis Bank Recurring Deposit
      "Good"
      AXIS BANK
      0.5 3.0/5 "Satisfactory"
      I got the Recurring deposit with the Axis bank and the interest rate is around 7.5% . Total tenure is for two years of time but I can withdraw it at anytime, also I am satisfied with their interest rate. Online services are working in good way and the response is also good one.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 22, 2017
    • ICICI Bank Recurring Deposit
      "Very Good service"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      I have opened the Recurring deposit with ICICI bank around 2 months ago. The benefits are really good with the RD. I am receiving the interest rate of 7% but being an bank employee, I got 8% for my RD. I pay around Rs.5000 every month and this was for a period of 3 years. I would say it is good for safety purpose and I got sufficient finanical support from them too.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jun 20, 2017
    • Karnataka Bank Recurring Deposit
      "Very good services"
      KARNATAKA BANK
      0.5 4.5/5 "Excellent!"
      I had taken a recurring deposit from Karnataka bank and the process was smooth and easy. The interest rate is also good and it is beneficial as well. The customer services has always been good and up to the mark. In all, I did not face any hassle till date with them.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jun 17, 2017
    • ICICI Bank Recurring Deposit
      "Good for saving"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      The positive with the Recurring deposit is the amount which get debits automatically to my Recurring deposit account during the end of the year, I will be getting a bulk amount with RD account. The rate of interest is good with ICICI bank, it is comparable with others. I am happy to hold a Recurring Deposit with ICICI bank.
      Was this review helpful? 0
      , pune
      Reviewed on Jun 15, 2017
    • ICICI Bank Recurring Deposit
      "Its Average"
      ICICI BANK
      0.5 4.0/5 "Great!"
      I have opened the recurring deposit account through ICICI online banking, it created immediately. Earlier I was paying the amount of Rs.5000 on monthly basis, after six months. I got the matured amount of Rs.500. Totally I got Rs.60500 it was not good.
      Was this review helpful? 2
      , delhi
      Reviewed on Jun 13, 2017
    • HDFC Bank Recurring Deposit
      "Good Service"
      HDFC BANK
      0.5 4.5/5 "Excellent!"
      I hold recurring deposit account with HDFC bank. The lock in period is one year. I am more comfortable with the services and I had no issues with the bank for RD account. The customer service is good and I am satisfied with the bank as I hold multiple services with the bank.
      Was this review helpful? 1
      , jabalpur
      Reviewed on Jun 05, 2017
    • SBI Recurring Deposit
      "Satisfactory services"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I have taken a holiday scheme from State bank of India. It is a recurring deposit and I need to pay 6600 per month and it is for a year. So it is linked with a company who has these schemes for Holidays. The customer services was good and helpful to get me this account.
      Was this review helpful? 5
      , guwahati
      Reviewed on May 31, 2017
    • 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? 4
      , 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? 10
      , 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? 8
      , 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? 3
      , 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? 5
      , 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? 3
      , 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? 3
      , 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? 8
      , 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? 5
      , 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? 6
      , bangalore
      Reviewed on May 09, 2017
    Common Loader Icon
    Page 1 of 46 1 2 3 4 5
  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.