How to Open a Recurring Deposit Account Online?
Ramesh is a simpleton who lives in a far-off village. He earns well and has a regular source of income. He wants to make more money by investing in financial mechanisms. He was new to making investments; therefore, he wanted to start with a simple and risk-free investment mechanism. His friend suggested he start investing in Recurring Deposit as it is risk-free. Ramesh lived far from the city, so he couldn’t go down to the city monthly to pay the monthly instalments on which RD interest rates would occur. He wondered if he knew how to open a recurring deposit online.
If you too want to open a recurring deposit and don’t have a bank in your reach, worry not. With digitalization at its peak, you can open a recurring deposit account from the comfort of your home. To know how to do that, keep reading this blog.
What is a Recurring Deposit or a RD Account?
If you are new to this investing game, opening up a recurring deposit account is the safest field to play as it is the simplest and safest investment option. It is considered best for people who are new to investing. In a recurring deposit, you deposit money in instalments over a specific period and earn a high return on investment. After the maturity period is over, you will get the rd interest rates along with the principal amount invested. You can also calculate your RD interest rates using a recurring deposit calculator.
What is Recurring Deposit Calculator?
It is essential to calculate your interest under your chosen recurring deposit by using a recurring deposit calculator. This is calculated by entailing factors like tenure, type of scheme, invested funds, etc. You can calculate your rd interest rates by either the recurring deposit calculator or by the following formula-
M= R[(1+i)n-1]/1-(1+i)- 1/3
- Maturity value is represented by ‘M.’
- The monthly instalment is represented by ‘R.’
- The number of quarters is represented by ‘n.’
- The rate of interest is represented by ‘i’
How to Open a Recurring Deposit (RD) Account Online?
You can open a recurring deposit account online by sitting comfortably at your home. Learn how to open a regular deposit account online by following these steps-
- If you want to manage your recurring deposit account online, your bank account must have net banking enabled. If not, get in touch with your bank and fill out the net banking registration form.
- After your bank account has net banking enabled, you need to access your account online. You can download your bank’s official application or go to their website and login into your account by using your Username or ID and password.
- Navigate through the website or application, and you’ll find an option for opening an RD account. Choose that option and provide them with details like the amount to be deposited, rd interest rates, tenure, etc. Choose a plan or scheme that is best suited for you.
- Once this process is completed, you have to link your savings account with this account to transfer your instalment regularly and opt to place a standing instruction mandate to make your instalment payments automatically by the due date each month.
- Check the box to confirm their terms and condition.
Benefits of Opening a Recurring Deposit Account Online
Now that you’ve learned how to open a recurring deposit online let us look at some major benefits.
- Opening up a recurring deposit online is hassle-free and easy to open. All the eligibilities are checked out by having a savings account.
- You don’t have to submit extra documentation as long as your savings account is linked with your RD account and has net banking enabled. This makes the whole process convenient and efficient.
- Applying online can save you time and energy to run to a bank to open a recurring deposit account.
- You have full control of your account at just the tip of your fingers. You can check your recurring deposit interest rates and monitor them by sitting at your home.
- It also saves you from physically going to the bank to pay instalments, as your linked savings account will automatically deduct the instalment money.
Top 5 Bank’s Best Recurring Deposit Interest Rates in India 2021
- State Bank Of India– The interest rate is 4.40%-5.50% for the general public, and the interest rate is 4.90-6.20% for senior citizens.
- ICICI Bank– For the general public, the interest rate is 3.50%-5.50%, and for senior citizens, the interest rate is 4.00-6.30%.
- HDFC Bank– The interest rate is 4.40%-5.50% for the general public, and for senior citizens, the interest rate is 4.90-6.25%.
- Kotak Mahindra– For the general public, the interest rate is 4.30%-5.20%, and for senior citizens, the interest rate is 4.80- 5.70%.
- Axis Bank– For the general public, the interest rate is 4.40%-5.75% per annum, and for senior citizens, the interest rate is 4.65%-6.50% per annum.
It is best to open and monitor your recurring deposit account by sitting comfortably at your home, as you can now open it using the online mode. There are many benefits to opening an RD account online. Open your RD account today either online or by visiting your bank and avail all the other benefits and higher rate of return on the investment with security.