A Recurring Deposit, often known as an RD, is a one-of-a-kind term deposit that allows you to make recurring contributions while earning the best-in-class returns on your investment. Because of the monthly deposits and interest component, it regularly gives investors the flexibility and convenience of investing. Recurring Deposits, like Fixed Deposits, are a contract between you and Shriram City for the authorised interest rate from the moment of investment until maturity.

1. Shriram City offers high returns

   Shriram City Recurring Deposit provides an interest rate of 8.50%* on its RD plans. Parents can use Shriram City RDs to plan their kids' future. RDs are one of the best investment vehicles for wealth creation. Using Recurring Deposits, one can start their investment journey.

2. RD offers flexible tenure

   The Recurring Deposit plan provides different varieties of tenure choices ranging from 12 to 60 months. With long-tenure RDs, parents can plan their kids' education. Depending on your requirement and financial objectives, you can select the period. Only the tenure, RD gives the option to select the investment amount. For short-term goals, one can go with an RD plan of less tenure. On the other hand, If you have a large event scheduled in, say, five years, you may finance it with a recurring deposit of 60 months.

3. RD offers flexible payouts

   Shriram City provides different payment options to all its clients. Customers who book a Recurring Deposit can choose Auto Refund or Conversion to Fixed Deposit.

4. Auto refund

   Customers can use the Auto Refund option to withdraw the amount of a matured Recurring Deposit to their bank account on the maturity date. This is a good option if you have a significant event coming up such as a wedding or need to save for your child's college fee. Repayment of a Recurring Deposit, if due on a Sunday, a public holiday, or any other day when the company's head office is closed for whatever reason, shall be made the next business day.

5. Conversion to FD

   Investors can convert their Recurring Deposits to Fixed Deposits. This is a good option for those who don't need money right now but want to take advantage of Shriram City's high-interest rates on Fixed Deposits.

6. Reduces risk

   Shriram City Recurring Deposit is a secure form of investment that allows you plenty of time to grow your money. Shriram City provides high interest rates to help you beat inflation. This makes it a popular choice among those looking to save money for their kids' better future.

7. Guaranteed returns

   If you are investing for your kid's future, guaranteed returns give a secure feeling. One of the best features of Recurring Deposits is that they provide assured returns. Unlike other investments that are subject to market fluctuations, regular deposits ensure a consistent return on the amount invested. RDs are a must-have investment choice for investors of all ages since returns are not affected by market fluctuations, ensuring a high return on investment.

8. Minimum investment amount

   In Recurring Deposits, the minimum monthly investment amount is as little as Rs 100. This is a key draw for salaried people. It is extremely effective in inculcating the habit of saving since the investor is required to invest a portion of his income on a monthly basis.

   Payments to an individual's RD account can be made straight from a savings or current account.

   A savings account can be connected to an RD account. As a result, no documentation is required in these cases. Unlike Fixed Deposits, which require the investor to invest a lump sum amount at a single time, Recurring Deposits do not place any such burden on the investor.

9. No need to worry about interest rate fluctuations

   Market volatility can affect mutual funds and stock investments. Deposited cash, on the other hand, is safe and secure in RD schemes, and is repaid, with interest, at the end of the stipulated term. On the other hand, interest rate fluctuations will impact cash in banks.

   RD interest rates are fixed, so there is no need to be concerned about interest rate fluctuations. Recurring deposits are an ideal investment choice, especially for people looking to fund short-term financial needs such as a dream trip or wedding, higher education expenses, and so on.

10. Tax Deductions

    Recurring Deposits are subject to TDS (Tax Deducted at Source). It is deducted at 10% on the interest generated beyond Rs 40,000 (Rs 50,000 for senior citizens). This regulation has been in place since April this year. This is done to protect the interests of investors with lesser incomes.

RD calculators are used to calculate recurring deposit returns. Using an RD calculator can help you save a lot of time and get more accurate results. These calculators eliminate hard math calculations. They are accurate, free, understandable, and offer fast calculations.

1. Is TDS levied on RD interest?

   Yes, Recurring Deposit interest income is taxable and falls under the category of "income from other sources."

2. What is the tenure range for Recurring Deposits?

   The duration of an RD might range from six months to 10 years.

3. What is the bare minimum amount required for opening a Recurring Deposit account?

   Most banks let you open an RD account with as little as Rs 500. However, it differs depending on the banking institution.

4. Are there any advantages for the elderly?

   Seniors get paid at a greater interest rate than the general population.

5. Will I be fined for violating the RD too soon?

   Yes, a fine will be imposed.

6. What is the frequency at which the RD amount is compounded?

   RD investments are compounded quarterly.

7. What is the bare minimum amount for a monthly investment?

   A minimum of Rs 100 can be invested.