• Recurring Deposit Interest Rates In India
• Best Recurring Deposit Interest Rates
• Recurring Deposit Interest Rate
• Recurring Deposit Interest Rate Calculator

A recurring deposit is a special kind of term deposit offered by banks which help people with regular incomes to deposit a fixed amount every month into their recurring deposit account and earn interest at the rate applicable to fixed deposits.^[1] It is similar to making fixed deposits of a certain amount in monthly installments. This deposit matures on a specific date in the future along with all the deposits made every month. Recurring deposit schemes allow customers an opportunity to build up their savings through regular monthly deposits of a fixed sum over a fixed period of time. The minimum period of a recurring deposit is six months and the maximum is ten years.^[2]

Most banks calculate interest on recurring deposits on a quarterly basis. The interest amount is compounded. The maturity amount is simply a sum of each installment and the corresponding accumulated interest amounts. RD calculations can be complex. Therefore, it may be best to use the many RD interest calculators online that will help you. No Interest will be paid if the NRE Recurring Deposit is prematurely withdrawn before 1 year. With effect from Oct 24, 2015, the following changes would be applicable to all Recurring Deposits. Interest on a Recurring Deposit will be calculated from the date the instalment is paid. STFC's recurring deposit scheme will be the best choice by investing fixed amount of money every month and earn good interest. Recurring Deposit: Check RD Features & Rates - STFC Toll Free No.

IWish Flexible Recurring Deposit: Interest Rates, Tax Benefits & Advantages. IWish Flexible Recurring Deposit: Check out the benefits, features, and advantages of the iWish flexible RD account from ICICI. It offers you all the benefits of a regular RD account with added flexibility, helping you reach your goals faster. Recurring Deposit Invest fixed sum of amount on monthly basis in Recurring Deposit and get attractive interest rates. Recurring Deposit allows customers with an opportunity to build up their wealth securely through regular monthly deposit of fixed sum over a period of time.

Recurring Deposit Interest Rates In India

The recurring deposit can be funded by standing instructions which are the instructions by the customer to the bank to withdraw a certain sum of money from his/her savings/current account and credit to the recurring deposit account.

When the recurring deposit account is opened, the maturity value is indicated to the customer assuming that the monthly installments will be paid regularly on due dates. If any installment is delayed, the interest payable in the account will be reduced and will not be sufficient to reach the maturity value. Therefore, the difference in interest will be deducted from the maturity value as a penalty. The rate of penalty will be fixed upfront. Interest is compounded on quarterly basis in recurring deposits.

One can avail loans against the collateral of a recurring deposit up to 80 to 90% of the deposit value.^[1]

The rate of interest offered is similar to that of fixed deposits.^[1]

Best Recurring Deposit Interest Rates

The formula to calculate the interest is given as under:${\displaystyle I=\frac{P\ast n(n+1)r}{12\ast 2\ast 100}}$${\displaystyle =\frac{P\ast n(n+1)r}{2400}}$ where I is the interest, n is time in months and r is rate of interest per annum and P is the monthly deposit.^[3]

The formula to calculate the maturity amount is as follows:Total sum deposited+Interest on it ${\displaystyle =P(n)+I}$${\displaystyle =P\ast n[1+\frac{(n+1)r}{2400}]}$.

Recurring Deposit Interest Rate

Taxation[edit]

Tax deducted at source (TDS) is applicable on recurring deposits. If interest earned on recurring deposits exceeds Rs. 40,000 a year, TDS at the rate of 10% would be deducted by the bank. Income tax is to be paid on interest earned from a Recurring Deposit at the rate of tax slab of the Recurring Deposit holder. Investors with no taxable income will have to submit form 15G to avoid TDS on both recurring deposits and fixed deposits. However, for investors who are senior citizens (above the age of 60) you will have to file form 15H to avoid TDS on both RD and FD. ^[4]

References[edit]

1. ^ ^abc'From Post Office RD, Bank RD to Debt MF SIP, find out your option for risk-free recurring deposits'. 13 June 2019. Retrieved 23 June 2019.
2. ^Vijayaragavan Iyengar (2009). Introduction to Banking. Excel Books India. pp. 313–. ISBN978-81-7446-569-6.
3. ^M.L. Aggarwal. APC Understanding ICSE Mathematics - Class 10 - Avichal Publishing Company. Avichal Publishing Company. pp. 58–. ISBN978-81-7739-302-6.
4. ^Sharma, Ashwini Kumar (2020-04-20). 'Avoid unnecessary TDS, furnish form 15G and 15H'. mint. Retrieved 2020-10-20.

A Recurring Deposit is a simple way to save money every month and earn higher interest than you get with a
Savings Account. If you maintain a Savings Account with us, a specified amount can be automatically transferred from it every month to your Recurring Deposit. At the end of the tenure, you will have saved a considerable sum of money.

The minimum ticket size of Rs. 5,000 to a maximum of Rs. 2 lakh

• The minimum tenure is 12 months (in multiplies of 3 months thereafter)
• The maximum tenure is 60 months
• Get interest rates equal to that of regular Fixed Deposits

More Fixed Deposit options

Resident Fixed Deposit

Senior Citizen Fixed Deposit

NRI Fixed Deposit

Enjoy attractive returns with maximum liquidity with NRE or NRO Fixed Deposits.

Apply for Fixed Deposit

SMS FD to 561615

Recurring Deposit Interest Rate Calculator

Call 18602666601^#

^#Customers outside India need to dial +91 22 6601 6601. Customers in Mumbai can also call at +91 22 6601 6601. Call charges apply.

Useful Information

• ^This is applicable only for certain tenures. Please refer to the Interest Rates for more details.
• *Conditions apply - Fixed Deposit:
  • No interest is payable for all deposits withdrawn prematurely before 7 days
  • Premature withdrawal: In case of premature withdrawal of fixed deposits on 7th day or thereafter, the interest rate will be 1.00% below the applicable interest rate for the deposit. The applicable interest rate will be the rate as on the date of booking for the period for which the deposit has run. This will be applicable for all deposits including renewals
  • Minimum fixed deposit amount is Rs. 20,000
  • Interest Rates are subject to change without prior notice
  • The stated documentation is subject to change and is at the sole discretion of Deutsche Bank AG
  • Deutsche Bank Tax Saver Fixed Deposit is structured to benefit you the most in terms of this provision. Amount invested up to Rs. 1.5 lakh for a fixed period of 5 years in Tax Saver Fixed Deposit is eligible for deduction under Section 80 (C) of Income Tax Act, 1961

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