What is the minimum and maximum investment amount for Shriram City Recurring Deposit?

  • Recurring Deposit
  • 16 Days ago
Shriram City Recurring Deposit
HIGHLIGHTS

  • What is a Recurring Deposit?
  • Benefits of Recurring Deposits in General and Shriram City Recurring Deposit Scheme in Particular
  • Minimum and maximum investment amount limits


It is by saving money that you can secure your future. In case of medical emergencies or unexpected loss of income, that is you can rely on. Savings also allow you to take calculated risks to make your life better.  Nevertheless, it is challenging to hold money in hand and not want to spend it. Therefore, the option would be to invest the same.  

There are times when you could set aside a part of your salary as savings. This amount can be efficiently invested in RD or recurring deposits.  

What is a Recurring Deposit?

It is a scheme of investment whereby a fixed sum of money is invested every month until the specified period. This is considered beneficial for the small investors, SME and MSME, and salaried individuals who have to use their finances for several needs and invest a part of the same. Moreover, it is beneficial in instilling the habit of saving. The fixed rate of interest is calculated for an RD for its whole tenure. The principal amount, along with interest, is returned at maturity; it is the most preferred form of investment in India. Scroll down for the benefits offered under the RD Scheme.

Benefits of Recurring Deposits in General and Shriram City Recurring Deposit Scheme in Particular

  • You may make deposits only in the name of a minor, provided that the parent or legal guardian represents him/her. The parent or legal guardian signs the application form, and all correspondence regarding the deposit will be with the parent or legal guardian only.
  • You may make a deposit jointly, and the RD may be held together under the First or Survivor clause or the Anyone or Survivor clause as specified by the depositor.
  • The depositor can add a nominee for the RD if the depositor dies; the principal amount and interest earned will be credited to the nominee’s account.
  • The interest rates are unaffected by the rate of inflation nor by the difference in interest rates.
  • You can easily change the depositor’s address by sending valid address proof and the Address/Contact Change Request Letter; click for the prescribed form.
  • Shriram City offers a choice in tenure and is rated MAA+/ with a “stable” outlook by the ICRA; this is why it is considered a safe investment.
  • The money can be deposited either by an account payee cheque or demand draft issued in favor of SHRIRAM CITY UNION FINANCE or online.

Shriram City Recurring Deposit Scheme—Meaning and purpose

Shriram City Union Finance Ltd. offers an RD scheme that has distinct features. This is a term deposit that enables the investor to deposit money at fixed, regular intervals. The tenure for the RD is 12 to 60 months, and the depositor can choose the term as per his convenience. The RD is flexible and offers a high interest rate to opt for an auto refund and convert the same to an FD on maturity. By way of RDs, Shriram City enters into a contract with the investor agreeing to pay interest at a fixed rate from the date it is invested until the date it matures.

Minimum and maximum investment amount limits

 

MAXIMUM LIMIT

MINIMUM LIMIT

Minimum & Maximum amount to be deposited

Vary from one back to another

Vary from one back to another

RD investment amount in Banks and financial institutions other than Shriram RD

 

INR 1000

Shriram RD minimum Investment amount

not specified

INR 500

Investment Tenure

Five years

One year

Rate of interest in  Banks and financial institutions other than Shriram RD

8.5%

2.5%

Rate of interest in Shriram RD

8.75%

7.28%

  • The minimum and maximum limits for money to be deposited as monthly instalments, in the case of RDs, vary from one bank to another and one financial institution to another.
  • The RD minimum investment plan amount is INR 1,000 per month, and the minimum tenure is one year.
  • The minimum investment amount in Shriram City Recurring Deposit is INR 500, and the minimum tenure is one year.
  • The interest on the money deposited for the RD may be calculated using the RD Calculator.
  • The rate of interest for the deposit is a minimum of 2.5% and a maximum of 8.5%
  • Shriram City pays interest at a minimum rate of 7.28% to a maximum of 8.75%, depending on the fixed-income investment scheme’s tenure.
  • The maturity value of a minimum amount of INR 500 invested for a year will be INR 6,240; the bank will add the interest at a maximum rate of 7.28%
  • The maturity value of a minimum amount of INR 500 invested for 24 months will be INR 12,965, and the interest is calculated at the maximum rate of 7.37%.
  • The maturity value of a minimum amount of INR 500 invested for 36 months will be INR 20,540, and the interest is calculated at the maximum rate of 8.43%
  • The maturity value of a minimum amount of INR 500 invested for 48 months will be INR 28,720, and the interest is calculated at the maximum rate of 8.59%.
  • The maturity value of a minimum amount of INR 500 invested for 60 months will be INR 37,750, and the interest is calculated at the maximum rate of 8.75%.
  • The maximum amount to be deposited is generally not indicated; however, it is INR 15 lakhs per month in certain banks.
  • Shriram City accepts deposits in multiples of INR 500, and a maximum amount is not specified.
  • The minimum tenure of the deposit is 12 months (one year), and the maximum term is 60 months (5 years).
  • A premature withdrawal is permitted only after a minimum of three months have elapsed after you first deposited the money in the RD, but you will not pay the interest of those three months.
  • Interest will be lowered by a minimum of 2% and a maximum of 3% if the RD is withdrawn after six months of the deposit but before the maturity date.
  • As per the directives of the RBI regarding RD, interest should be paid for the intervening Sunday, holiday, non-business working days on the value of the RD on maturity. The RBI is the governing body and sets the rules and regulations to be followed by all banks and financial institutions.
  • The interest earned on RD is non-taxable, provided the maximum interest earned is INR 10,000. Interest made more than that will be taxable.

Features of Shriram Recurring Deposit Scheme

The Unique features of the Shriram Recurring Deposit Scheme are as follows:

  • The company offers a high rate of interest on investment under the recurring deposit scheme.
  • The customer is free to time the RD as per his convenience from 12 months (1 year) to 5 years(60 months) 
  • On maturity, the amount deposited and the interest thereof will be either re-invested with the conversion to FD feature or credited to the customers’ account with the auto refund feature as per his instructions at the time of the deposit.

Conclusion

Whether you invest in an FD or RD, you must invest your money and make the most out of it. As a safer investment option, Recurring Deposit Scheme by Shriram City offers you the flexibility to invest small amounts every month so that you do not have to put a lot of your money in one go. 

You can apply for the Shriram City Recurring Deposit Scheme Online.