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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 47 1 2 3 4 5
    • 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
    • HDFC Bank Recurring Deposit
      "Good Saving"
      HDFC BANK
      0.5 3.0/5 "Satisfactory"
      Generally invest Rs.10,000 on monthly average in my HDFC recurring deposit account. It has the tenure of two years, after maturity period I would get the amount around 30,000 and above. I am satisfied with them, online transaction is easy to make the payment.
      Was this review helpful? 0
      , chandigarh
      Reviewed on Oct 13, 2017
    • ICICI Bank Recurring Deposit
      "Good saving and convenient saving"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      ICICI recurring deposit is very convenient to access through online, I opened RD through netbanking it was simple. Currently I am investing Rs.5000 for a year , I get 6.9% of interest per annum. I am could do the liquidity through online, but there was some charge applicable around Rs.300.
      Was this review helpful? 0
      , pune
      Reviewed on Oct 12, 2017
    • Axis Bank Recurring Deposit
      "Average Service"
      AXIS BANK
      0.5 3.5/5 "Pretty good"
      As I'm holding my salary account with AXIS Bank I decided to maintain a Recurring Deposit account with them. Now I have this account for the past 1 year. They offer me 7 to 8% interest. The funds did not auto debited from my salary account to this RD account. Every month I had to visit the bank. After 4 months then this problem got rectified. The interests can be improved.
      Was this review helpful? 0
      , delhi
      Reviewed on Oct 09, 2017
    • ICICI Bank Recurring Deposit
      "Best"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      I am having the recurring deposit with the ICICI bnak and the interest rate is around 8.5%, also their customer service is nice one for me, also their response too. Online banking services are good one with the ICICI bank.
      Was this review helpful? 0
      , panvel
      Reviewed on Oct 07, 2017
    • Canara Bank Recurring Deposit
      "Excellent Service"
      CANARA BANK
      0.5 5.0/5 "Blown Away!"
      I have been holding an Recurring deposit in the CANARA BANK for few years now. As I liked CANARA BANK very much I hold this here. All services are good in this CANARA BANK. Every month I pay Rs. 60000 to this. My interest for this recurring deposit is 8.5% - 9%.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 30, 2017
    • HDFC Bank Recurring Deposit
      "Very Good"
      HDFC BANK
      0.5 4.5/5 "Excellent!"
      I have the recurring deposit account with the HDFC bank and their interest rate is around 6.7%. Response is very good one for me and the total lock in period is around three to four years of time , also it depends on the choice.
      Was this review helpful? 0
      , patna
      Reviewed on Sep 28, 2017
    • HDFC Bank Recurring Deposit
      "Recurring deposit"
      HDFC BANK
      0.5 4.0/5 "Great!"
      Its just hold a saving account with HDFC based on which i had opened this RD. I dont see much difference in the interest rate nor i am able to save much savings it was meager. The interest rate was very much minimal not that much and all. For trial period i had opened this RD and i had preclosed it .This was taken before 6 years and RD was taken for a tenure of 3 months only.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 28, 2017
    • Kotak Recurring Deposit
      "not good"
      KOTAK MAHINDRA BANK
      0.5 1.0/5 "Really Bad"
      Bad service and experience i had with KOTAK MAHENDRA Bank for holding my recurring deposit account over there . I availed it for rupees 20,000 and i was paying monthly EMI 3,000 . When i asked them can i have a plan for 4 years they informed me that i can only take for 11 months and after that i need to renew it . The rate of interest was good they were providing .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 28, 2017
    • SBI Recurring Deposit
      "Good investment"
      STATE BANK OF INDIA
      0.5 4.5/5 "Excellent!"
      Every month I am investing Rs.3000 for the tenure of one year. After the tenure period I would receive the 7.5% of interest along with the investment amount, I opened the RD through online, I could track the details in mobile application, Iam fine with their benefits.
      Was this review helpful? 0
      , navi mumbai
      Reviewed on Sep 27, 2017
    • Bank of India Recurring Deposit
      "Good RD plan"
      BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I have opened a Recurring Deposit account with Bank of India on 2014. I have used the RD account for past 2years. I got the Rate of interest with 8.7% in which BOI issued for the RD account. I have got profit around Rs.16000 to 20000. The rate of interest changed at present
      Was this review helpful? 0
      , kakinada
      Reviewed on Sep 26, 2017
    • SBI Recurring Deposit
      "Recurring deposit"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      Every 6 months the money would get debited from my salary account and would get transferred to Recurring Deposit. Its mainly because I have opted for a AUTO PAY. Interest rate offered by 6.25% no tax benefits i guess.
      Was this review helpful? 0
      , vadodara
      Reviewed on Sep 23, 2017
    • HDFC Bank Recurring Deposit
      "Wonderful"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I am having the recurring deposit account with the HDFC bank and the response is very good one. Interest rate is good one with the HDFC bank like and their online banking facilities are good one with them.
      Was this review helpful? 0
      , kottayam
      Reviewed on Sep 22, 2017
    • ICICI Bank Recurring Deposit
      "Wonderful"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      I had the recurrent deposit account with the ICICI bank and their customer service is good one for me. I would like to say that the online banking services are also good one with the ICICI bank and I have not faced any issues with them till now.
      Was this review helpful? 0
      , madurai
      Reviewed on Sep 22, 2017
    • HDFC Bank Recurring Deposit
      "Its Average"
      HDFC BANK
      0.5 3.5/5 "Pretty good"
      I had account issue with my saving account, hence their staff informed me to open recurring deposit with them. Therefore I opened RD before six months, every month I am making the payment of Rs.1000 it has tenure of six months. Finally I got the total amount Rs.6102 there was no benefit.
      Was this review helpful? 0
      , kollam
      Reviewed on Sep 21, 2017
    • HDFC Bank Recurring Deposit
      "Excellent service"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I have got a Recurring deposit with HDFC bank . I have got the RD account for 10 months but I have closed within 5months itself. I have close the RD account because of my emergency need. The rate of interest is nominal with HDFC RD account . I didn't got much difference in the amount when I closed RD account , I am satisfied with eh RD account from HDFC bank.
      Was this review helpful? 0
      , chennai
      Reviewed on Sep 20, 2017
    • ICICI Bank Recurring Deposit
      "Good returns on long term investment"
      ICICI BANK
      0.5 4.0/5 "Great!"
      For people like me who spend a lot, best option to save some money is by starting to save first and spend later. In order to achieve this I have invested in recurring deposits for 3 times in ICICI bank.you can do this instantaneously without any documentation using your phone if you have a savings account and phone banking.interest rates are as per government
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 20, 2017
    • HDFC Bank Recurring Deposit
      "Reccure the deposit"
      HDFC BANK
      0.5 4.0/5 "Great!"
      With HDFC bank i hold a Recurring deposit. As my salary account is with HDFC they directly deduct the recurring deposit amount. The amount which is deducting is 1000 rs. After one year we can withdraw that amount with a rate of interest 12 percentage.
      Was this review helpful? 0
      , krishnagiri
      Reviewed on Sep 18, 2017
    • Lakshmi Vilas Bank Recurring Deposit
      "Its Good"
      LAKSHMI VILAS BANK
      0.5 5.0/5 "Blown Away!"
      I have a RD with Lakshmi Vilas, I am investing Rs. 3000 on monthly basis it has minimum tenure of one year, more than a year, I am holding it. They giving 8% of interest for the same bank staff , for others 7.5% of RD Holder, now I hope they reduced around 7%.
      Was this review helpful? 0
      , rajapalayam
      Reviewed on Sep 13, 2017
    • HDFC Bank Recurring Deposit
      "RD is also good"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      HDFC RD is also very good. There is an option here, where one can transfer the funds on a monthly basis. Interest rate is one and the same as FD. I had given auto debit options where the funds would be transferred from my account to this RD. I dont get any tax benefit here and its a short term RD.
      Was this review helpful? 0
      , jaipur
      Reviewed on Sep 12, 2017
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