Minimum Investment of Rs. Features and Benefits Build your savings on a regular basis Save through fixed monthly deposits over a fixed period. Enjoy benefits with a Short Minimum Tenure 6 months only. Stay compliant with prevalent tax laws Tax at source is deducted as per the Income Tax regulations prevalent from time to time. TDS in respect of interest earned on fixed deposits, is deducted on the basis of the total interest projected on the aggregate of fixed deposits of the customer, for the financial year.
TDS is deducted proportionately from the existing fixed deposits at the time of interest application. For any further clarifications, please contact the base Branch. For Rupee Term Deposits of a contracted amount less than Rs. Instead of investing a lump sum, you should deposit a specific amount into your account each month, which you determined when you opened your RD account. This could be a tiny sum that won't completely empty your wallet.
And when the sum matures, you'll have a large sum in excess of your principal, plus interest. A Recurring Deposit account can be opened for as little as 6 months or in multiples of 3 months, with the longest term being 10 years. The interest rates offered by a Recurring Deposit are similar to those offered by fixed deposits. If you are a senior citizen, you will be given a 0. Enter basic information such as your name, email address, and mobile number to open your Recurring Deposit account online.
An RD account means a banking or postal service account in which a depositor puts a certain amount of money each month for a set length of time commonly spanning from one year to five years. Yes, it is possible to terminate a recurring deposit. That is something that the bank or post office cannot refuse. You may receive the amount you invested, but you will not receive any interest. Multiply your earnings within minimum duration of 6 months. Apply Now. RD accounts have a six-month minimum deposit period and a ten-year maximum deposit period.
Recurring Deposit accounts pay a higher rate of interest than savings accounts. The choices in the types of savings instruments available to the public have risen manifold in recent years. However, one investment option that has stayed popular amongst people of all age groups is Recurring Deposit RD. The main reason for this is that RDs are one of the safest investment instruments available. It allows the investors to credit a fixed amount into their Recurring Deposit account on a monthly basis, and earn interest at a rate that varies between 5.
The primary benefit of a recurring deposit over an FD is that you can commit to investing a fixed amount every month, whereas an FD relies on a lump sum payment, which many may not be in a position to do regularly.
Unlike Fixed Deposit, you can deposit a fixed sum with your Bank or Post Office for a pre-defined term every month. In return, you receive interest at a pre-defined rate, and at the end of the term, the invested capital along with accumulated interest is paid to you. It is important to remember that, once you start an RD account, the deposit amount and term cannot be altered. Additionally, there are no weekly or quarterly deposit payment options.
Most banks have a minimum deposit amount of Rs. You must also commit to making deposits in multiples of Rs. It is best to check with your bank what their specific policies are in this regard. Related: Understanding your savings account. The minimum period for almost all RDs is 6 months, and this is extendable by multiples of 3 months up to a maximum permissible period of 10 years months.
The benefit that RDs offer is that you can define the length of the term. The interest rate offered on RDs is directly correlated to the prime rate of the Reserve Bank of India RBI and is compounded and credited to the account on a quarterly basis. Though the basic functionality of the RD accounts offered by Post Office and banks work the same way, there may be differences in certain policies and regulations.
Download link sent. Start investing now or. Interest Rate 2. Start Investing Now. Was this article helpful? Have a query? ITR Resources.
0コメント