30 October, 2024
Synopsis
You can open a Recurring Deposit (RD) account with a bank, to save regularly and earn interest.
Recurring Deposits help achieve financial goals with consistent contributions.
You can start RD investment with amount as low as ₹500.
Recurring Deposits (RD) offer individuals a disciplined way to save money regularly while earning interest. By committing to deposit, a fixed amount each month into an RD account, you can build a significant corpus over time. This blog will cover all you need to know about RD accounts, how to open one and the factors to consider.
What is an RD Account?
An RD account is a deposit account where you deposit a fixed sum of money each month. The monthly fixed amount and tenure are determined by you, while you open the account. The fixed amount you deposit each month earns interest which is compounded quarterly. This systematic approach to savings makes RDs an excellent option for those looking to build savings gradually.
What is the Procedure to Open a Recurring Deposit Account?
Opening an RD account is a simple process. You can open an RD in bank branches, post offices, or through online banking platforms. Here’s the general procedure:
Visit the Bank or Post Office: Go to the nearest branch of your bank or post office.
Fill Out the Application Form: Complete the form with your details, including the monthly installment you wish to deposit and the tenure.
Submit Necessary Documents: Provide identification and address proof, such as your Aadhaar, or passport or any other Officially Valid document (OVD).
Make the First Deposit: Pay the first RD installment to activate the account.
Receive Confirmation: Once your documents are verified, the bank or post office will provide you with a passbook or an account statement confirming your RD account.
How to Open an RD Account Online with HDFC Bank?
HDFC Bank offers a convenient way to open a Recurring Deposit online, allowing you to start saving with just a few clicks. Here’s how you can open an RD account online with HDFC Bank:
How to Open the Account Online:
Log into NetBanking or Mobile Banking: Use your credentials to access HDFC Bank’s NetBanking or MobileBanking app.
Navigate to the RD Section: Select the option to open a Recurring Deposit.
Enter the Details: Choose your monthly deposit amount and the tenure of the RD. You can also select the account from which the funds will be debited.
Confirm and Submit: After reviewing the details, submit your application. The RD account will be created instantly, and you’ll receive an acknowledgement via SMS or email.
Payment of Installments: The instalment amount, once fixed, cannot be altered later. In case multiple instalments are overdue, up to six instalments can be recovered from the linked account if there’s sufficient balance.
How to Open an RD Account Offline
If you prefer to open an RD account offline, here’s what you need to do:
Visit the Bank Branch: Go to your bank’s nearest branch. Click here to find your nearest Branch.
Request an RD Application Form: Ask for the RD account opening form.
Fill in the Form: Provide your personal details, the RD amount, tenure, and nominee information.
Submit the Form with Documents: Attach copies of your identity and address proof along with the form.
Make the First Payment: Deposit the first RD instalment in cash or through your Savings Account.
Receive the Passbook: Once processed, the bank will issue a passbook or account statement confirming your RD account details.
This traditional method of opening an RD account ensures that you have personalised assistance from bank staff throughout the process.
Investment Options:
You can start an RD with a minimum amount as low as ₹500 and in multiples of ₹100 after that. The maximum amount you can invest per month is ₹2,99,99,900.
The tenure for the RD ranges from a minimum of 6 months (in multiples of 3 months after that) to a maximum of 10 years. For NRI customers, the minimum tenure is 12 months.
For a relatively small monthly investment, you can earn interest rates equivalent to regular Fixed Deposits.
Final Note
Recurring Deposits offer a simple and effective way to save money regularly and earn a steady return. Whether you open an RD account online or offline, it’s essential to understand the procedure and the benefits of this savings tool. With regular contributions and a fixed tenure, an RD account can help you achieve your financial goals, whether it's saving for a future expense or building an emergency fund.
Open an RD with HDFC Bank instantly.
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
