Minimum investment of 500 Rs
Flexible Tenure
Save regularly

recurring Deposits (RD)

If you are thinking about investing and have a regular income, a Recurring Deposit can be just what you need. Periodic investments come with the reward of high-interest rates when investing in Recurring Deposits. Our Recurring Deposits will earn you an interest rate similar to regular Fixed Deposits but for a comparatively smaller amount per month. You can choose to begin your investment with an amount as little as INR 100. You can select a tenure ranging from three months up to 10 years. How is Recurring Deposit interest calculated? Recurring Deposit is calculated using the compound interest formula. The savings have to be deposited into the account every month. The interest on your savings is compounded quarterly.

Features & Benefits Calculator Interest Rates Eligibility & Documentation How to Apply Types of FD FAQs Features & Benefits

Features & Benefits of Recurring Deposit (RD)

Goal Based Savings 🎯

Do hassle-free investments every month and take a step towards your financial goals with a disciplined savings approach.

Assured Returns & Locked Interest Rate ✅

Avail assured returns and a locked interest rate (up to 6.6% p.a.*) that remains fixed till the last installment, offering security.

Low Investment Value (INR 1,000) 💰

Start investing with a low minimum deposit, as little as **INR 1,000 per month**, making it accessible to all.

Flexible Tenures 🗓️

Choose tenures ranging from a minimum of **12 months to 24 months**, allowing you to align the deposit with your short-term goals.

Open Online 💻

Open a Recurring Deposit easily through the SC Mobile app or Online Banking in just a few clicks, saving time and effort.

Senior Citizen Benefits 👵👴

Senior citizens opening a Recurring Deposit with Standard Chartered get **higher interest rates** than the general public.

RD Calculator

₹
%
Yr
Invested amount ₹18,00,000
Est. returns ₹1,91,214
Total value ₹19,91,214

How to Open an RD Account?

There are two ways in which you can open a recurring deposit account with your preferred bank:

Online Application:

Step Instruction
Step 1 Sign into your bank’s net banking or mobile banking account.
Step 2 Select the option of ‘Open an e-RD Account’ on your dashboard.
Step 3 Specify the account number for debit, preferred instalment amount, and investment period. Review the applicable RD interest rate and designate a nominee.
Step 4 Confirm acceptance of terms and conditions, ensuring to check the projected maturity amount.
Step 5 A confirmation message will appear, and a receipt will be sent to your registered email address. The specified amount will then be debited.

Offline Application:

Step Instruction
Step 1 Visit the nearest bank branch where you hold a savings account.
Step 2 Complete the RD application form, including details such as instalment amount, payment mode, deposit duration, nominee information, and other necessary data.
Step 3 Make the first instalment payment via cheque or cash.
Step 4 The bank representative will process your application within a stipulated time frame.

Benefits of Recurring Deposits (RD)

Investing in a recurring deposit account is a smart choice, as the principal amount invested is almost guaranteed to provide a return. The offered rate of return is also attractive, making the RD an intelligent investment option. Some other benefits of investing money in an RD account include:

Benefit Description
Simple Investment Product RD is one of the simplest financial products in which to invest. It is ideal for new investors and helps develop disciplined saving habits.
Guaranteed Returns Unlike volatile investments like equity or mutual funds, RDs offer guaranteed returns on the principal amount.
Flexible Tenure The tenure can range from 6 months to 10 years. Investors can choose short-term, medium-term, or long-term options based on their goals.
Low Minimum Deposit You can start with a minimum deposit of Rs. 100 for public sector banks, while private banks may require a minimum of Rs. 500 to Rs. 1,000.
Premature Closure Some banks allow premature withdrawal or closure, though a small fee may be charged. This provides liquidity in case of financial emergencies.
Loan Against RD Banks offer loans against recurring deposits, allowing you to borrow up to 90%-95% of the RD balance.
Flexible RD Options Flexible RD schemes let you deposit any amount greater than the minimum at any time. Some banks even allow missed instalments without penalties.
Encourages Saving Habits RD schemes instill a sense of savings discipline in the public, making them an effective tool for financial planning.

Frequently Asked Questions

Both Recurring Deposits (RDs) and Fixed Deposits (FDs) have their merits, but FDs typically offer higher returns. In an RD, you deposit money monthly, so interest accumulates gradually, whereas in an FD, you invest a lump sum and earn interest from day one. However, an RD is more suitable for those who cannot invest a large sum at once and prefer a disciplined, monthly savings approach.

No, you cannot make withdrawals from an RD account before its maturity without facing penalties. However, some banks allow premature withdrawal under specific conditions, which may come with a lower interest rate or penalties. Partial withdrawals are generally not allowed for most banks.

Yes, many banks and financial institutions allow you to close an RD account online, depending on their policies. You can log in to your online banking portal, navigate to the RD section, and follow the steps for closure. However, you may still need to visit the branch for certain formalities, depending on the bank.

Currently, Bandhan Bank offers some of the highest RD interest rates, ranging between 3.00% to 8.05% for the general public and 3.75% to 8.55% for senior citizens. However, interest rates vary by bank and the tenure you select, so it is a good idea to check with multiple institutions before opening an RD account.

If you deposit Rs. 1,000 per month for one year at an interest rate of 7.75%, the total interest earned will be around Rs. 512.5. The total maturity amount, including the interest and principal, will be Rs. 12,512.5 after one year.

If you deposit Rs. 5,000 per month for five years at an interest rate of 7.75%, you will earn approximately Rs. 66,869.39 in interest. The total maturity amount will be Rs. 3,66,869.39, including the principal and interest.

Several banks offer RD interest rates of 7% or higher. These include SBI, HDFC Bank, ICICI Bank, Union Bank, Kotak Mahindra Bank, Bank of Baroda, Corporation Bank, PNB, Canara Bank, Bank of India, Bandhan Bank, IndusInd Bank, etc.

Yes, the interest earned on a Recurring Deposit (RD) is taxable. While the principal amount is not taxed, the interest income is added to your total income and taxed according to your income tax slab. Banks also deduct TDS (Tax Deducted at Source) if the interest earned in a year exceeds Rs. 40,000 (Rs. 50,000 for senior citizens).

Yes, RD accounts require monthly deposits. The tenure for this account can range from 6 months to 10 years, with the RD interest rates applied being higher than that of a regular savings account. You can select the tenure based on your financial goals, and the interest is compounded quarterly.