Recurring Deposit - Open RD Account Online - AU Small Finance Bank
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Recurring Deposits
Regular investments at attractive interest rates

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Top Features Of Recurring Deposits

About Recurring Deposits

    You can build your wealth securely through regular investments at attractive interest rates. With AU Small Finance Bank you can get interest rates similar to that of a regular Fixed Deposits for a much smaller investment per month. Start with an investment as small as Rs 100. Enjoy a minimum tenure of three months up to a maximum tenure of 10 years.


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Eligibility

  • Resident Individuals
  • Non-Resident Individuals (NRI)
  • Hindu Undivided Families
  • Private & Public Limited Companies
  • Trust & Societies

Resident Individuals cannot open a Recurring Deposit without a linked Savings Account. For NRI customers, the minimum tenure is 12 months.



Payment of Interest on Recurring Deposits

  • Interest is only paid on maturity.
  • TDS (Tax Deducted at Source) will be deducted when interest payable or reinvested on Recurring Deposits and Fixed Deposits per customer, across all branches, exceed Rs 40,000/- (Rs  50,000/- in case of senior citizens) in a financial year.
  • TDS on Recurring Deposit is applicable as per Finance Act 2015. For NRE Recurring Deposit, Interest and principal is tax free in India and fully repatriable.Minimum period for NRE Recurring Deposit is one year.


Payment of Instalment

  • Once fixed, the instalment amount cannot be altered at any later date.
  • If more than one instalment is overdue at the time of instalment, the paid instalment, if sufficient, will cover only that one instalment. This instalment will be appropriated towards the first or earliest installment overdue.
  • Partial payment of instalments will not be permitted.
  • For premature withdrawals, the Bank will levy a penalty of 1% on the applicable rate.


Tenure

  • The Recurring Deposit account has a minimum tenure of three months.
  • In case of premature closure within a month, no interest shall be paid to the depositor and only the principal amount shall be returned.


Maturity

  • Interest is paid only on maturity.
  • The deposit shall be due for repayment and shall mature on completion of the contracted tenure, even if there are instalments still to be paid.
  • The maturity amount mentioned on the Recurring Deposit confirmation advice, is subject to payment of all instalments on time.
  • In case of any delay in the payment of scheduled instalments, the maturity amount shall change.


Overdue Installments

  • If frequent defaults (non-payments) are observed in monthly installments, and three installments fall in debts, the Bank reserves the right to close the RD account. The interest rate applicable on such closed accounts will be as per the premature withdrawal policy of the Bank.


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