Recurring Deposit Calculator
Monthly InstalmentInterest Rate
Period (months)Interest Compounding
Maturity Value

Bank Recurring Deposit Accounts

Recurring Deposit accounts provide the facility of saving small amounts of money every month to meet future financial goals and earn relatively higher risk free returns.

The salient features of Bank Recurring Deposit Accounts are :



Who can open?Adult individuals, singly or jointly with other adults
Requirements for Opening AccountThe requirements for opening of accounts are the same as mentioned under Savings Bank Accounts.

Usually Recurring Deposit Accounts are maintained by banks for Saving Bank / Current Account holders only.

Minimum amountRs. 100/- per month.
Maximum amountNo Maximum limit
Maturity Period12 months to 10 years.
Interest RateThe Interest Rate varies from bank to bank.

The Interest Rate is as applicable to Term / Fixed deposit accounts in the concerned bank.

Usually deposits for longer periods attract higher interest rates.

The interest is usually compounded at quarterly rests.

Nomination facilityAvailable
TransferabilityTransferable from one branch of the bank to another.
Deduction u/s 80CNot Available
Interest TaxabilityInterest earned is taxable.
Overdraft / Loan facilityOverdraft/loan facility is available against security of the balance in the account.
Premature paymentPremature payment is allowed subject to penalty of lower interest.
Other featuresA pass book is issued in Recurring Deposit Accounts.

Delayed payment of monthly installments invite penalties.

Monthly instalment can be deposited by way of standing instruction from Saving Bank or Current Account.

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