Under Recurring Deposit scheme, investors invest a specific amount in this scheme on monthly basis for a fixed rate of return. The deposit has a fixed tenure, at the end of which investor will get principal sum as well as the interest earned during that period. Recurring Deposit will provide you the element of compulsion to save at attractive rate of interest applicable from time to time.
- Plan named as Recurring Deposit scheme.
- Minimum tenure 12 months to 72 months.
- Frequency of Deposit – Monthly, Quarterly, Half Yearly & Yearly.
- Minimum amount of RD is with the deposit of Rs. 100 or in multiple of Rs. 100.
- No TDS interest deduction on interest earned.
- RD Certificate will be provided to the member.
- Authorized Society advisor, collect the amount from investors of their residents & Business place.
- To open recurring deposit a/c with society one has to become member of a society.
Terms & Conditions of Recurring Deposit Scheme
- No Prematurity allowed.
- Grace period for deposit RD premium for Quarterly, Half Yearly & Yearly is of 30 days, & for Monthly installment there is a grace period of 15 days.
- After grace period, 2% flat monthly penalty will be charged on installment lapsed as per follow structure: More than 5 years plan – 12 Months.
- If RD installment discontinued than maturity will be done as per mentioned structure as follow: More than 60 Month (Deposit Amount +6% Interest payable), at the time of completion of the tenure of scheme.
- Loan Eligibility as follow –
- Available on 5 yrs and above RD plans.
- Applicant can apply only after completing 3 yrs in plan.
- LTV (Loan To Value Ratio) – 40% of loan on total deposit amount.
Salient Features
• Who can open Recurring Deposit account:
- A single member adult or two member adults jointly.
- A guardian on behalf of a minor or a person of unsound mind.
• Where can be opened:
- Walk-in to Branch office or with the help of Field Associates.
• Tenure of Recurring Deposit Account:
- 12 Months
- 24 Months
- 60 Months
• Deposit Limit:
- Minimum amount in multiple of Rs. 100.
- Maximum: No Limit
• Renewal Facility:
- Renewal facility provides the continuation of Recurring Deposit, after maturity in that you have an option to increase the tenure and can avail prevailing interest of that time. Wherein you get the higher rate of interest benefits.
• Defaults in Payments:
- Grace period of paying premium is 15 days.
- The delay payments will be liable for 2 % penal fees .Accounts can be regularized after paying the penal fee.
• Interest & Repayment on Maturity:
- On maturity of the accounts the Amount repayable inclusive of Interest, with interest less penal charges (if applicable).
• Nomination Facility:
- You can avail this facility for each & every account that you open with us i.e. nominate different persons for different recurring deposits accounts. You can choose to change the nominee through a declaration in the appropriate form to revise the nomination during the term of the deposit.
• Passbook in Recurring Deposit Account:
- Depositor is provided with a pass book with entries of the deposited amount and other particulars duly stamped by the Branch Office.
• Income Tax Relief under Recurring Deposit Scheme:
- No TDS deduction on Interest earned.