How To Open RD Account?

All major public banks and private banks in India offer Recurring Deposit products for their customers. Recurring Deposit Accounts are perfect for small-time, salaried investors who wish to save regularly and with discipline. With Recurring Deposit Accounts, you can inculcate a financial discipline in your investing habits as well as earn decent returns. Also, India Post offers a popular Recurring Deposit Scheme in the name of Post office Recurring Deposit scheme that is preferred by most investors.

You can read more about the benefits of the Recurring Deposit here.

If you are wondering how to open Recurring Deposit Accounts, you can follow these simple steps to open an RD Account:

  • If you already have an account with the bank you want to open a Recurring Deposit with, you must contact the nearest bank branch or the bank’s customer service cell who will help you open a Recurring Deposit Account. Since all major public and private banks offer this facility, you will face no difficulty whatsoever in opening an RD Account.
  • If you wish to open an RD Account in a bank that you do not have an account with, you will need to contact the nearest branch and submit an application form. Also, you will need to provide the basic KYC documents to open an account. Different banks offer different terms and conditions regarding the interest rates, time duration, minimum investment, minimum account limit, etc. Compare all of this information to make an ideal choice of which bank you would want to open the account with.
  • The tenure and the monthly due amount (deposit amount), must be decided at the time of opening an RD Account. Monthly payments for Recurring Deposits can be made online using the ECS, online banking or fund transfer. You can also give standing orders to your bank to deduct a certain amount every month towards the Recurring Deposit Account.

Looking to open an HDFC Bank Recurring Deposit? Click here to get started!

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.