What is Recurring Deposit?
It is an account in a bank or in a post office where a depositor or investor deposits a fixed sum of money every month continuously for an agreed period (normally six months to five years). After the end of the agreed period the investor gets back lump sum money representing his principle and interest together. Small monthly savings regularly deposited accumulated to a handsome amount at the maturity.
A Recurring Deposit Account can be open by an (a) individual in his or her own name, (b) jointly by two or more person for joint or single or any one or more person’s name as beneficiary, & (c) Club, Association, Society, Trust, Educational Institution, Partnership Firm, etc.
SBI Recurring Deposit:
The SBI Recurring Deposit scheme is very popular among the Indian citizen; it can be opened by a Non Resident Indian also. The usual procedure for opening this type of account is as under—
- Collect and fill up the account opening form.
- Prepare a signature card
- One passport size photograph of the account holder or if there is one more holder or operator each of them must submit one photograph each.
- The account holder or holders have to be introduced by one existing client of SBICI or any present banker of the client.
- If the depositor is a Non Resident Indian he must be introduced by any of the following authority– Indian Embassy or High Commission or Consulate or Notary Public.
- A copy of the passport in case of a NRI client is to be submitted.
- Proof of Residential address,
- Income Tax Permanent Account Number or Form 60 to be submitted.
ICICI Recurring Deposit Scheme (interest rates 2011):
The application for this scheme can be made either online, or by visiting any of its branches or through 24 hour customer care service. No receipt is given for the deposit but a passbook is issued which is regularly updated after depositing the installment. A minimum initial deposit of RS 500 per is required thereafter in multiple of Rs100 per month. Nomination facility is available. TDs are not applicable on recurring deposit scheme.
Period (General %/Senior Citizen %)-
6 months (7%/ 7.70%), 9 months (7.50/8.00), 12 months (8.25/8.75), 18 months (8.25/8.75), 21 months (8.25/8.75), 24 months (8.50/9.00), 27 months (8.50/9.00),30 months (8.50/9.00), 33 months (8.50/9.00), 3 years but less than 8 years (8.75/9.25), 8 years to 10 years (8.75/9.25).