The Recurring deposit account is an account in the bank where an investor deposits a fixed amount of money every month for a fixed tenure (mostly ranging from one year to five years). This scheme is meant for investors who want to deposit a fixed amount every month, in order to get a lump sum after some years. The small monthly savings in the Recurring Deposit scheme enable the depositor to accumulate a handsome amount on maturity. Interest at term deposit rates is computable on quarterly compounded basis. The account can be opened by individuals.
| TENURE | RATE OF INTEREST | MATURITY AMOUNT | LOAN PAYABLE @ 20% P.A. |
|---|---|---|---|
| 12 Months | 9.00% | 12597 | After 6 months- 50% |
| 24 Months | 9.25% | 26436 | After 6 months- 50% |
| 36 Months | 09.50% | 41746 | After 6 months- 50% |
| 48 Months | 09.75% | 58797 | After 6 months- 50% |
| 60 Months | 10.00% | 77911 | After 6 months- 50% |
1. Recurring account can be opened with minimum Rs. 100 /- and further in multiple of Rs. 100.
2. Interest will be calculated monthly via Quarterly compound interest.
3. Defaulters will be charged at the rate Rs. 2% per month per instalment.
4. The amount on maturity will be paid one month after the last instalment has been paid or the date of payment whichever is later.
5. LOAN FACILITY:
- 12 months deposits scheme: Not available
- 24 months deposits scheme: After receipt of 12 instalments 80 percent loan of total deposit amount.
6. Rate of Interest on loan against deposits would be charged 7.5% higher than applicable rate of interest.
