Bank RD: Talking about SBI’s RD scheme, it can be opened for minimum 12 months and maximum for 124 months. The minimum deposit is Rs 100 and after that you can deposit in multiples of Rs 10. There is no maximum deposit limit.
Bank RD: Recurring deposit (RD) of banks is a good option for small savings for fixed income without taking any risk. You can open this account in any bank. In this you do not have to make a big lump sum investment. In RD, account holders deposit a fixed amount every month on a fixed date. This deposit can be done both online or offline. Usually it is seen that account holders forget to deposit the RD on the specified date. This is a big mistake. Because if the RD installment is not deposited on time, then penalty may have to be paid.
The amount, date and interest rates to be deposited every month are decided at the time of opening the RD account. With the bank, the customer decides on the basis of his convenience, for how many years he is getting the RD. Talking about SBI’s RD scheme, it can be opened for minimum 12 months and maximum for 124 months. The minimum deposit is Rs 100 and after that you can deposit in multiples of Rs 10. There is no maximum deposit limit.
Penalty if not deposited on time
The bank can impose penalty for not depositing the amount of RD on the due date. Every bank has different rules on this. In SBI, if you have made an RD for a tenure of 5 years or less and deposit the installment on time, then a penalty of Rs 1.50 will have to be paid per 100 rupees. At the same time, if the odds are more than 5 years, then this penalty will be Rs 2 per 100 rupees. At the same time, if 6 consecutive installments are not deposited, then the bank will close the account and will give the remaining amount to the account holder. If seen in this way, one mistake can cause you huge loss.
These benefits are available on RD
If you have opened a Recurring Deposit (RD) account, you get many other benefits. You can also avail loan or overdraft facility if needed. Banks also issue Universal Passbook for RD account. The account can also be mutually transferred to the branches of the bank. The interest earned on the maturity of RD is taxable. According to the Income Tax Rules, account holders can claim tax exemption by submitting Form 15G/15H.
