Is it possible to set up a recurring deposit online?

  • Recurring Deposit
  • 1 Months ago
Is it possible to set up a recurring deposit online?
HIGHLIGHTS

  • Benefits of an online recurring deposit account
  • How to apply for an online recurring deposit
  • Document required for online recurring deposit


Recurring deposits are considered one of the simplest and easiest investment options for investors. It helps investors and individuals to earn high ROI (return on investment) by making regular payments over a period. After the maturity period, a specific amount will be paid to the investor or individual and the principal amount invested over the years. You can open an online RD account with Shriram City. There are mainly two types of recurring deposits:

  1. Regular Recurring Deposit – It is one of the most common RD accounts.  You will have to deposit a regular amount every month for the whole tenure period chosen by you. The amount cannot be changed afterward. You will have to pay the same amount. If you fail to pay the amount or paid less, the account automatically generates the penalties. 
  2. Flexi Recurring Deposit – As the name suggests, recurring deposits are flexible. You will have to choose a core account at first. However, the amount can be changed as per your availability of funds. The interest rate might be lower than regular recurring deposits because they provided flexibility and convenience to the investors.

Benefits of an online recurring deposit account?

There are several benefits of opening a recurring deposit account. The advantages are as follows:

    1. High-interest rates – One of the essential benefits of a recurring deposit is the attractive rate of interest. The interest rates are higher as compared to saving accounts. The interest rates differ as per the tenure of the recurring deposit. Shriram City offers an attractive interest rate of 8.75% on recurring deposits.  It can go higher depending on the tenure.
    2. Flexible Tenure – You can choose your tenure as per your preference and requirements, i.e., 12 months to 60 months or more. You can also choose the monthly installments and the dates of payout. It gives you flexibility with your account and money. 
  • Flexible payouts – Shriram City offers flexible payments to investors and individuals. Customers can choose Auto Refund or conversion to fixed deposit options during the opening of the recurring deposit account with the bank. 
  • Documentation – The documents required for the recurring accounts are simple and easy to arrange. All individuals and investors can open the account with identity proof and address proofs. 

How to apply for an online recurring deposit?

You can open an online recurring deposit account with any bank as per your preferences and requirements. The online RD procedure is as follows:

  1. Investors should have a savings bank account with any bank to open a recurring deposit account with the same bank. If you don't have a savings account with the bank you wish to open a recurring deposit account, open new savings account with that particular bank first; to facilitate the opening of a recurring deposit account.
  2. Once you open a bank account, you can open an online RD account on the bank's web portal. Once you open an online RD account, an offline application is not required.
  3. It is essential to have an active internet banking account with the bank you are opening your RD account. If you don't have it, you can avail of internet banking services. You can log in with your internet banking using your username and password.
  4. A set of standard instructions will be set on your account when you submit the request for opening a recurring deposit account. All the debit installments will be set on your savings account for every month. Some banks might allow for offline deposits of installments. However, the initial installment is always online. The first installment is automatically debited from the savings account. Some banks will provide the option to choose the dates for the installment. 
  5. After you log in to net banking, you can select the type of recurring deposit, i.e., regular or Flexi recurring deposits.
  6. Choose the account you wish to link with your online recurring deposit account.
  7. Select the monthly installments and the period/tenure. The tenure determines the interest rates. Old-age people or senior citizens might get additional interest rate options and exemptions. Usually, the minimum balance of deposits per month is INR 500. You can check the requirements and minimum deposit values with your respective bank.
  8. You can convert the maturity amount into a fixed deposit or opt to receive it into savings accounts.
  9. Read the terms and conditions carefully. Once you read it, click on the submit button.
  10. After clicking the submit button, you will be required to fill in the name, mode of holding, and nomination of the account.
  11. After you confirm all the sections, the recurring deposit will be created, reference number of the account will be generated along with the e-RD account number.
  12. You can download the details, print or view the e-RD detail as per your requirements.
  13. Apart from that, you can also set up a SI (Standing Instruction) if you wish. 

Document required for online recurring deposit: 

Various documents are required for online recurring deposits. It might be different as per the bank requirements. The major documents that are required are as follows:

  • Identity proof – Identity proof contains the following documents and proofs:
  • Passport
  • PAN card
  • Driving license
  • Voter ID card
  • Government ID card
  • Senior citizen ID card
  • Photo ration card
  • Address proof – Address proof includes the following proof and documents:
  • Passport
  • Telephone bill
  • Electricity bill
  • Certificate or ID card issued by post office
  • Bank statement with cheque
  • Photographs
  • Canceled cheque leaf, if required. 

Shriram City online recurring deposit:

Individuals and investors can opt for different tenure as per their preferences and availability of funds. The interest rate will be determined accordingly. Let us assume you choose 12 months at a monthly installment of INR 500. The interest rate will be 7.28%. So, the maturity value for your monthly installment will be INR 6,240 after 12 months. The different interest rates as per the tenure of the recurring deposit accounts are as follows:

Tenure (in years)

Rates % per annum  

Maturity value (Monthly installment of INR 500) (in INR)

1

7.28

6,240

2

7.37

12,965

3

8.43

20,540

4

8.59

28,720

5

8.75

37,750



Recurring deposits are a great option for investment. It will help you generate higher returns. You can also adjust your tenure as per your needs and funds. The process of online recurring deposit accounts is automated. Once you open an account, the installments will be charged monthly from your bank account. It helps to save time and makes the process more efficient. You can open a recurring deposit account with Shriram City. It offers the best interest rates and flexible tenure to the customers, investors, and individuals.