Recurring Deposits (RD) - High Interest Rates Recurring Deposit Accounts from YES BANK

 

Making provisions for your future by investing your earnings in a secure manner is crucial. For this reason, YES BANK Recurring Deposit is designed to help you prepare for the future. It enables you to make a financial provision by investing a fixed amount every month for a defined period. At the end of pre-defined period you are paid back the lump sum including the principal and interest.

A recurring deposit (RD) account is a special kind of term deposit wherein a fixed amount of money is deposited in the account every month for a specific time period. This money earns interest, which is compounded quarterly, and can be withdrawn at the end of the stipulated tenure. The rate of interest depends on the fixed amount of deposit which you decide to pay, with regard to the tenure of the payment. A higher sum and longer tenure attract greater rates of interest.

For salaried employees, and those with the ability to make regular deposits, this is an ideal way to save a certain amount of money every month and earn substantial interest on the same. An RD provides the perfect savings-cum-investment opportunity for people with a fixed income, who plan to meet certain financial goals or provide for liabilities in the future.

Recurring Deposit Interest Rates:

Resident Recurring Deposit rates  w.e.f 5th June 2018*

Period

Interest Rate

**Senior Citizen Rates (per annum)

(per annum)

6 Months

6.70%

7.20%

9 Months

6.70%

7.20%

12 Months

7.10%

7.60%

15 Months

7.10%

7.60%

18 Months

7.10%

7.60%

21 Months

7.10%

7.60%

24 Months

7.10%

7.60%

Above 2 years upto 10 Years

7.10%

7.60%

 

 

Recurring Deposits

Making provisions for your future by investing your earnings in a secure manner is crucial. For this reason, YES BANK’s Recurring Deposit is designed to help you invest your earnings in a monthly manner.

A recurring deposit (RD) account is a special kind of term deposit wherein a fixed amount of money is deposited in the account every month for a specific time period. This money earns interest, which is compounded quarterly, and can be withdrawn at the end of the stipulated tenure. The rate of interest depends on the fixed amount of deposit which you decide to pay, with regard to the tenure of the payment. A higher sum and longer tenure attract greater rates of interest.

For salaried employees, and those with the ability to make regular deposits, this is an ideal way to save a certain amount of money every month and earn substantial interest on the same. An RD provides the perfect savings-cum-investment opportunity for people with a fixed income, who plan to meet certain financial goals or provide for liabilities in the future.

Features and Benefits

By paying easy monthly instalments, you could ensure that you not only save money for the future, but are also assured returns on your deposit.

Some of the basic advantages of an RD include:

  • There is no risk involved. Your monthly remittance remains secure, with guaranteed returns.

  • You choose the amount of the monthly instalment as per your convenience. At YES BANK India, this instalment can be as little as INR 1000/- and may increase in multiples of INR 100/- without any restrictions on the upper limit.

  • It encourages the habit of making regular savings. The more you choose to save and deposit, the higher is the rate of interest.

  • An RD attracts interest rates similar to that of fixed deposit accounts, while you pay a comparatively lesser amount in instalments.

  • The minimum tenure to open an RD account is only 6 months. This tenure can be increased in multiples of 3 months up to a period of 10 years. You may choose the duration according to your finances and convenience.

  • You may easily avail a loan or overdraft against your RD in case of an emergency.

By opening a recurring deposit account with YES BANK, you are entitled to the following benefits as well:

  • Senior citizens are offered a higher rate of interest, which is an extra 0.50% on each slab.

  • Making monthly payments is easy and hassle-free. A one-time standing instruction from your savings account at YES BANK would result in automatic payment of instalments to your recurring deposit account.

  • Keep a regular track of your deposits.

  • Book your recurring deposit account online through YES BANK’s easy and secure NetBanking facility.

Interest Rates

Interest rates vary depending upon the type of account you seek to open. The longer the tenure of your RD, higher is the rate of interest. The interest accrued on a quarterly basis is compounded to increase your earnings. However, NRE/NRO RD accounts shall attract a slightly lower interest rate.

Eligibility and Documentation

The eligibility criteria for an RD from YES BANK remain the same as that of fixed deposit accounts. Any resident individual, Hindu Undivided Family (HUF), Private or Public Limited Company or Trust & Society may open an RD. In order to prove eligibility, you must produce the following documents, with two passport-sized photographs:

  • Identity Proof – Passport, Aadhar Card, Driving License, Government ID, Senior Citizen ID Card, or PAN Card

  • Address Proof – Passport, Telephone Bill, Electricity Bill, Bank Statement with Cheque

Opening and Maintaining an RD Account

In order to open a recurring deposit account, all you need to do is get in touch with your bank, assess the appropriate scheme for yourself, produce the relevant documents and make the initial payment by the due date.

With YES BANK, you do not need to visit any branch. You can simply sit in the comfort of your home and book yourself an RD account online by using our NetBanking facility.

Funding this account is even easier. You may set standing instructions to debit your bank account every month on the due date of payment. If, however, you are more comfortable visiting the bank physically, you may approach your nearest branch on or before the due date.

It is highly recommended that you avoid late payments and try not to miss any payment dates. However, in case you do miss a payment, you could approach any of the YES BANK branches along with an application stating that a payment was missed, and that it is being made. A penalty charge of 1% shall be levied on the fixed interest rate for that particular instalment.

 

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