What is the Recurring Deposit Scheme offered by Shriram City?

  • Recurring Deposit
  • 3 Months ago
Recurring Deposit Scheme
HIGHLIGHTS

  • Benefits of recurring deposit scheme
  • Shriram City recurring deposit scheme
  • Why are RDs the best investment?


Recurring deposits (RDs) are the term deposits offered by banks that help individuals to deposit a fixed amount of money every month and earn interest. It is one of the best monthly saving schemes for individuals offered by Shriram City. The interest rates depend on the money invested by an individual or investor. It allows you to make monthly deposits in your RD saving account and earn extravagant interest rates.

Shriram City offers the best interest rates for individuals. You can choose the best RD plan as per your requirements. You can open a recurring deposit account with multiple financial institutions, such as NBFC, banks, or post offices. You can invest the amount as per your requirements and the availability of the funds. The RD minimum amount is INR 500 per month. However, you can check the RD scheme later in the article. The maximum RD interest rate is 8.75% offered by Shriram City.

An RD is the best deposit scheme to fit your short- or long-term funding plans. Like fixed deposits, there will be a contract between the individual and Shriram City containing all the details of interest rate, tenure, and monthly amount until maturity.

Benefits of recurring deposit scheme:

The following are the various benefits and advantages of an RD scheme: 

  • High returns 

Shriram City offers attractive interest rates to individuals on RDs. The interest rates vary on their term of tenure and scheme. However, the interest rates can be up to 8.75%. High-interest rates help build your financial wealth and plan for a secure future.

Shriram City has been certified with reliability and offers the best recurring deposits in India. You can choose various RD plans that suit your preferences and funds. 

  • Flexible tenure 

Shriram City provides flexible tenure to its customers and investors. You can select a tenure for 12 or 60 months as per your needs. The interest rates are more lucrative if you invest for a longer period. You can choose the monthly investment and duration of the investment based on your availability of funds and financial objectives. 

  • Flexible pay-outs 

Another advantage of recurring deposits is flexible pay-outs. Shriram City offers different options for pay-outs as per the customer's requirements and needs. The customers can either opt for conversion to fixed deposit or the auto refund option. It provided flexibility into the pay-out component of RDs for the customers.

Shriram City recurring deposit scheme

The Shriram City recurring deposit scheme is as follows:

Period (months) 

Rate % per annum

Maturity value for a monthly installment of INR 500

12

7.28

6,240

24

7.37

12,965

36

8.43

20,540

48

8.59

28,720

60 

8.75 

37,750 

Recurring deposit maturity instructions 

Shriram City offers two options while applying for RDs, and these options are as follows: 

  • Auto refund 

The first option is an auto refund that allows customers to withdraw the deposit amount on the maturity date directly into the depositor's bank account. It is a perfect option if you have something big planned, such as a child's education fees or marriage expenses, etc. The amount will be deposited into the depositor's bank account the next working day if the repayment date falls on a Sunday or bank holiday. 

  • Conversion to fixed deposit 

Another option in a recurring deposit at maturity is to convert it into a fixed deposit. It is perfect if you do not have any big events planned or require funds. You can avail the extra benefits of Shriram City and earn high interest by converting it into fixed deposits. The instructions at the time of maturity are as follows:

  • The deposit will be auto renewed as per the customer’s instructions specified in the application form. 
  • On the first applicant on conversion, the company will generate the e-receipt on the fixed deposits to the registered email id of the applicant.
  • Premature withdrawal 

The RD premature withdrawal norms of the Shriram City are listed as follows:

  1. Up to 3 months from the date of deposit, there is no repayment except for the depositor’s death.
  2. After 3 months but before 6 months, no interest is given to the depositor if he/she decides to withdraw the deposit after 3 months but before 6 months.
  3. After 6 months but before the date of maturity, the interest rate will be 2% lower than that applicable at the time of deposit. If no interest rate were decided, 3% of the rate would be reduced from the amount.

What documents are required by Shriram City for RDs?

The documents required for RDs are as follows:

  • Self-attested ID proof includes the Aadhar card, PAN card, driver’s license, voter card, etc.
  • Self-attested address proof includes the PAN card, electricity bill, ration card, voter card, Aadhar card, etc.
  • Photographs
  • Canceled cheque leaf

Why are RDs the best investment?

RDs are considered the best investment because they have higher interest rates for the customers. Shriram City provides the best recurring deposit interest rates India. Let us read the reasons why it is considered the best investment: 

  • Guaranteed returns 

Shriram City offers guaranteed returns on RDs to its customers. Some investments are dependent on the market cycle. However, RDs offer steady returns on the investment amount. The best part of RDs is that it is available for all the age groups. The returns are not linked with the market conditions. 

  • Flexible timeline 

You can choose the timeline of the RD as per your preference. Shriram City provides different timelines according to the customers’ needs, i.e., 12 to 60 months. The monthly investments and lock-in period allow users to determine their future goals and earn good interest rates simultaneously. 

  • Mitigates risk 

Shriram City allows customers to make a safe investment with RDs. It gives time to customers to build their investment and secure their financial goals. The generous interest rates help beat the inflation rate, making it a more favored option among investors and individuals.

Conclusion 

To conclude, we can say that RDs are the best investment options for investors and individuals. With Shriram City, you can earn a high rate of interest compounded over a long period. It gives you the flexibility to choose the tenure of the RD and regular monthly installments of the deposit.