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Recurring Deposits in banks are one of the instruments of accumulating a particular amount periodically, to help us during various occasions of unexpected financial burden. It is a good saving instrument for ordinary middle class, which has a fixed amount of revenue as its monthly income. It is also suitable for small time businessmen, Traders etc, as they do not have to block a large sum, which is a requirement for other types of saving instruments. Even some smart students open recurring deposit accounts with the pocket money they get from the parents. Almost all banks offer Recurring Deposit Scheme, and all of them have their own set of features.
Benefits of recurring deposit scheme:
1. The Recurring Deposit scheme, like all other investment avenues, comes with its own set of benefits and they are:
2. Minimum amount of Deposit is Rs.10. No maximum limit. Deposit should be made every month within the calendar month. Default fee is chargeable for delayed deposit at 0.20 P. per month of delay, for Rs. 10 Denomination.
3. Maximum defaults allowed in an account is four (4). After four defaults the account is treated as 'discontinued'. Discontinued account can be revived by paying defaulted deposits, within two months from the fifth default. If it is not so revived, the account cannot be continued.
4. For advance deposits, including deposit for current month, rebate is allowed at the rate: Denomination Rs.10. 6 advance deposits…….Re.1/- 12 advance deposits: 4/-
5. Premature closure is permitted on completion of 3 years from the date of opening. Interest is to be calculated as per the rules and rate applicable to individual savings account. at the rate applicable to savings account from time to time is calculated and paid.
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What is meant by recurring deposit account?
A Recurring Deposit is a special type of bank account wherein the customer will deposit a small amount of money regularly every month. Banks will offer higher interest rates than the usual savings or current accounts because the customer will not withdraw the money until the deposit matures.
What are recurring deposit accounts?
The Recurring deposit account is an account in the bank (or a Post office in some countries) where an investor deposits a fixed amount of money every month for a fixed tenure (mostly ranging from one year to five years). This scheme is meant for investors who want to deposit a fixed amount every month, in order to get a lump sum after some years. The small monthly savings in the Recurring Deposit scheme enable the depositor to accumulate a handsome amount on maturity. Interest at term deposit rates is computable on quarterly compounded basis.
What is recurring account?
recurring means. the number goes on and on and on... e.g. 0.3 (recurring) = 0.33333333... A recurring account could refer to an account which you pay regularly - an account which recurs - such as a telephone account.
Can you break a recuring deposit?
Yes, you can break a recurring deposit. The bank cannot refuse that. But, the bank has the right to retain/cancel the interest due on it because you are not letting the recurring deposit mature or finish its full tenure. You will get the money you deposited but not any interest.
What is the account balance if you deposit 125 at 6 percent for 10 years?
It is 223.86
Letter format for recurring deposit installment complete so transfer this money in saving account?
Letter format for recurring deposit installment to from saving account
Can a company open a recurring deposit account?
yes
Is there loan available at recurring deposit account?
maybe
What is meant by recurring deposit account?
A Recurring Deposit is a special type of bank account wherein the customer will deposit a small amount of money regularly every month. Banks will offer higher interest rates than the usual savings or current accounts because the customer will not withdraw the money until the deposit matures.
Highest Interest in which deposit - recurring deposit or fixed deposit?
how to calculate Recurring deposit interest ?
Types of bank accounts in indai?
Some of the different types of accounts in India are: a. Savings Account b. Current Account c. Fixed Deposit Account d. Recurring Deposit Account e. Senior Citizen Deposit Account f. Senior Citizen Pension Account g. Etc.
How does an rd account works?
RD stands for Recurring Deposit. A Recurring Deposit is a special type of bank account wherein the customer will deposit a small amount of money regularly every month. Banks will offer higher interest rates than the usual savings or current accounts because the customer will not withdraw the money until the deposit matures.
What are the different types of bank accounts?
State Bank of India offers different types of accounts. They are: a. Savings Account b. Current Account c. Fixed Deposit Account d. Recurring Deposit Account e. Senior Citizen Deposit Account f. Senior Citizen Pension Account g. Etc.
What is meant by recurring deposit?
A Recurring Deposit is a special type of bank account wherein the customer will deposit a small amount of money regularly every month. Banks will offer higher interest rates than the usual savings or current accounts because the customer will not withdraw the money until the deposit matures.
Do you have a withdrawl slip for a recurring deposit account?
A Recurring Deposit is a special type of bank account wherein the customer will deposit a small amount of money regularly every month. Banks will offer higher interest rates than the usual savings or current accounts because the customer will not withdraw the money until the deposit matures. Since it isn't a regular deposit account, you don't have any withdrawal slips here. You can do a premature withdrawal of the full amount by paying a penalty fee but you cant do partial withdrawals.
What are recurring deposit accounts?
The Recurring deposit account is an account in the bank (or a Post office in some countries) where an investor deposits a fixed amount of money every month for a fixed tenure (mostly ranging from one year to five years). This scheme is meant for investors who want to deposit a fixed amount every month, in order to get a lump sum after some years. The small monthly savings in the Recurring Deposit scheme enable the depositor to accumulate a handsome amount on maturity. Interest at term deposit rates is computable on quarterly compounded basis.
What is Tenure of deposit in month for recurring deposit?
interest
