What Happens If You Miss to Pay the Recurring Deposit Due on Time?

Recurring Deposit is very popular investment scheme in India because of the guaranteed returns that it offers. It is always better to stay informed about all the terms and conditions associated with an investment scheme to be able to reap full benefits. When it comes to Recurring Deposit schemes, paying the deposit amount on time is very important. Read on to find more about what happens if you miss paying your recurring deposit on time and how to avoid such penalties.

What is a Recurring Deposit Due?

In a Recurring Deposit scheme, the customer will have to deposit fixed amounts every month into the account over a predefined period of time. The amount that has to be deposited every month is known as due.

If a customer has opted for a RD scheme where he has to deposit Rs. 5000 every month for a period of one year, Rs. 5000 becomes the due amount. The customer will have to deposit the due amount every month to the Recurring Deposit account by a variety of means like cash, standing instructions or local cheque. Instalments for a month must be credited to the Recurring Deposit Account on or before the last working day of that particular month.

What Happens If You Miss the Recurring Deposit Due for a Particular Month?

  • If by chance, you forget to pay the Recurring Deposit due for a month, you bank might charge a penalty. Read the terms and conditions for your RD scheme carefully to know the penalty for non-payment of monthly due.
  • If the customer does not pay the deposit amount for consecutive months, his RD account will be permanently deactivated or closed until he pays the outstanding amount. This time period varies from 3 months to 5 months depending on the bank.
  • However, if your Recurring Deposit scheme is flexible, you can choose not to pay the deposit amount for a month and you will not be charged any penalty.

How to Avoid the Penalty for Non Payment of Recurring Deposit Due?

  • If your problem is that you forget to make payments for RD, set up a standing instruction facility where the amount will be automatically debited from your account and transferred to Recurring Deposit account.
  • In case you don’t have sufficient funds to pay for your Recurring Deposit Due every month, try saving some money till you pay or lower the RD deposit amount for good.
  • You can also opt for a flexible Recurring Deposit scheme where you will not be penalized if you do not pay the due for a month or two.
  • Check the blueprint for the penalty that you will incur if you do not make a deposit for a month. Opt for a Recurring Deposit scheme that comes with the lowest penalty rate.
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Customer Reviews

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  • ICICI Bank Saving Account
    "Good service"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I am using ICICI Bank Salary account for the past 14 years ,I am using Mobile Banking service as well as Net Banking service both are quite user friendly .Customer service is also good and there was no difficulties faced so far on using this account .I am satisfied with the banking service so far .
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    , new delhi
    Reviewed on Oct 14, 2019
  • ICICI Bank
    ICICI Bank Credit Card
    "Excellent Service"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I have ICICI Bank credit card which i am using for the past 14 years.This was a free card and there was no difficulties faced so far on using this card .There are very good reward points and cash back offers which is really useful.I have Platinum card which is also good for me.
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    , new delhi
    Reviewed on Oct 14, 2019
  • review Saving Account
    "Need to improve customer service & decrease interest charges"
    ALLAHABAD BANK
    0.5 3.0/5 "Satisfactory"
    For the past 3 years I am holding salary account with ALLAHABAD BANK, there is some charges are applicable and high. It is a minimum balance to maintain an account for 1000 rupees. The customer service is not good. For this bank there is no ATM and only one branch available. ATM charges are also applicable.
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    , pondicherry
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  • Punjab National Bank Home Loan
    "Average service"
    PUNJAB NATIONAL BANK
    0.5 3.0/5 "Satisfactory"
    I have availed Home loan directly through Punjab National Bank .The rate of interest and the processing fee was very high ,I have got the loan amount on delay basis and i have applied for 26 lakhs for the tenure of 15 years.I have not faced any difficulties until i have received the loan .
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    , new delhi
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  • LIC Life Insurance
    "Medium"
    LIFE INSURANCE CORPORATION OF INDIA
    0.5 3.0/5 "Satisfactory"
    One month before I have taken a personal loan so they made to take life insurance with LIC company. On one payment need to do fully. In case if we missed to do payment or for some other reason unable to do from insurance they will claim full amount. Myself applicable for 10 lakhs but taken for 5.5 lakhs.
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    , pondicherry
    Reviewed on Oct 14, 2019
  • review Other Loan
    "Convenient app"
    PAYTM PAYMENTS BANK LTD
    0.5 5.0/5 "Blown Away!"
    Paytm is a good application to use. And its a convenient app for making payment. I have been using the mobile app of paytm for past 2 years. I have completed the kyc process and it was smooth I do the transaction of making payment in food court and restaurants.
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    , bangalore
    Reviewed on Oct 14, 2019
  • SBI Saving Account
    "Good Account"
    STATE BANK OF INDIA
    0.5 4.0/5 "Great!"
    From SBI, i do some kind of transaction through the online banking at the time, the service is getting busy or I'm facing the error of server issue. I am holding the SBI savings account for last 5 years. Its a zero balance account. In the branch, the response was prompt. They are taking a hidden charges for mail and SMS notifications.
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    , bangalore
    Reviewed on Oct 14, 2019
  • review Saving Account
    "Good Bank"
    FEDERAL BANK
    0.5 5.0/5 "Blown Away!"
    I am using the salary account for past 4 years from Federal bank and there is no single issue faced so far. I am convenient to use their digital banking facility. I gone to their branch and the response was good. The branch is not much crowded and the branch is accessible in all the place.
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    , bangalore
    Reviewed on Oct 14, 2019
  • HDFC Bank Personal Loan
    "Good"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I had applied personal loan from HDFC Bank. I did not submit my documents so verification was not done. After the application was submitted I did not get any update from HDFC Bank. Rate of interest was ok and their customer service was very good.
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    , nasik
    Reviewed on Oct 14, 2019
  • RBL Bank Credit Card
    "Convenient card"
    RATNAKAR BANK
    0.5 5.0/5 "Blown Away!"
    I use the RBL credit card for last 2 months. I actually trying for the money tap app, from that they directly contacted me and sent me a credit card. Documentation was a online process and one executive came to my office got the signature and took the photo.
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    , bangalore
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  • HDFC Bank Credit Card
    "Money savings card"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    HDFC Credit card is good but there is no separate app for checking the details of credit card. Every time i need to login their online banking to check the statement. I do have a money back credit card and even they keep sending the discounts mails and i have used quite numbers for ordering a fuel and buying the fuel.
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    , bangalore
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  • Citibank Credit Card
    "Convenient loan service"
    CITIBANK
    0.5 5.0/5 "Blown Away!"
    With CITI bank, I am holding the CITI premier miles card and it almost having a discounts on coupons. They keep on mailing me about the offers. The given credit limit is Rs. 57000 which is fine for me. It has a app and everything can be handled with the help of it.
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    , bangalore
    Reviewed on Oct 14, 2019
  • LIC Life Insurance
    "Good insurer"
    LIFE INSURANCE CORPORATION OF INDIA
    0.5 3.0/5 "Satisfactory"
    I have taken a life insurance in LIFE INSURANCE CORPORATION OF INDIA on one year before. I am paying premium in the quarterly package for the amount of 2065 rupees.While getting a policy my agent has given an information about the policy details. It covers my mother only.
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    , pondicherry
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  • HDFC Bank Personal Loan
    "Good"
    HDFC BANK
    0.5 4.5/5 "Excellent!"
    I had applied personal loan from HDFC Bank online. I received the loan on time and they disbursed sufficient loan amount. Rate of interest is ok but there processing fee is very high, I tried to negotiate but nothing happened. I submitted documents online.
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    , hyderabad
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  • ICICI Bank Car Loan
    "Good Loan Service"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
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    , bangalore
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  • Tata capital Personal Loan
    "Good Service"
    TATA CAPITAL LIMITED
    0.5 5.0/5 "Blown Away!"
    The process was very smooth and overall it took around 7 to 8 days. I bought the personal loan from TATA Capital. They offered me a interest rate of 13.5% which is a best offer for me so i got the loan from them. They do provide pre-closure and part payment facility.
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    , bangalore
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  • HDFC Bank Personal Loan
    "Average"
    HDFC BANK
    0.5 3.0/5 "Satisfactory"
    I applied personal loan from HDFC Bank. My application has been closed as I was not able to provide address proof. Their executive had collected all my documents but verification was not done. Their rate of interest is nominal, I was ok with it.
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    , aurangabad
    Reviewed on Oct 14, 2019
  • HDFC Bank Personal Loan
    "Very Good service"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I have applied for HDFC Bank personal loan through Online .I was unable to avail this loan since my salary was got on delayed for the past 3 to 4 months hence dropped the plan.There was no difficulties with the rate of interest and the processing fee.I have got all the details about the loan process very clearly through the agent.
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    , new delhi
    Reviewed on Oct 14, 2019
  • HDFC Bank Saving Account
    "Excellent Service"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I have HDFC Bank Salary account which i am using for the past 8 years ,I am using Net Banking service as well as Mobile Banking service and Phone Banking service all are very much comfortable .Customer service is quite average ,There was no drawbacks faced so far on using this account .
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    , nellore
    Reviewed on Oct 14, 2019
  • Fullerton Personal Loan
    "Need to decrease interest charges"
    FULLERTON
    0.5 3.0/5 "Satisfactory"
    From Fullerton customer service is good and they are prompt in response. Once I was applied for a personal loan got a call from their end on time. The amount which was offered for the tenure period of 5 years. The rate of interest was high of 25%. Since I got a loan from other bank I have not process for further.
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    , pondicherry
    Reviewed on Oct 14, 2019
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