How to Open a Recurring Deposit Online 2025
An RD account is a deposit account where you deposit a fixed sum of money each month. The monthly fixed amount and tenure are determined by you, while you open the account. The fixed amount you deposit each month earns interest which is compounded quarterly. This systematic approach to savings makes RDs an excellent option for those looking to build savings gradually.
A Recurring Deposit is one of the simplest investment options available that can help investors earn a high Return on Investment or ROI by making regular payments of a stipulated amount of money over a specific period of time.
By holding an RD account, the customer can be assured of regular income earned as savings, which will be paid out along with the principal amount invested in the account, after the maturity period. There are various methods of opening an RD account in a Bank of your choice, one of which is opening a Recurring Deposit (RD) online.
Types of Recurring Deposit (RD)
There are mainly two types of deposit accounts that are available in India:
- Regular Recurring Deposit - This is the most common RD account available in banks. You have a designated tenure and a particular deposit amount, chosen by you. The deposit amount you choose cannot be changed and you have to pay the same amount for the whole tenure that you have chosen. If any deposit remains unpaid or is less, the account generally attract penalties.
- Flexi Recurring Deposit - Flexi plans, as the name suggests, offer you the convenience and flexibility of choosing the amount you intend to deposit in a month. There is a core amount that has to be chosen, but it can be changed based on availability of funds. The interest rates might be slightly lower for these accounts but they offer the convenience of choosing the amount based on your financial situation, throughout the chosen tenure.
Why Open a Recurring Deposit Account Online?
The major benefits of opening a recurring deposit account online are:
- A recurring deposit account is the least hassling investment product considering that all the eligibility criteria are covered by simply having a savings account with the bank.
- No added documentation is needed as long as you have a savings account with the bank and your net banking is activated. Hence, the whole application process can be done conveniently and efficiently.
- You can apply online, so that you do not run to the bank for opening the account.
- You can manage your recurring deposit account online. You can keep checking the interest you are earning online.
- You can open the account and stay worry-free as long as you have the deposit amount in your linked bank account to pay the installment for each month's deposit.
The Top 5 Things You Need to Know Before You Open an Online Recurring Deposit (RD)
- In order to open a Recurring deposit online, you need to have activated the Net Banking facility in the Bank where you hold an account.
- Only if you have registered for the Net Banking facility with your Bank, will you be able to open an RD account online.
- In most banks it is mandatory that you should have a savings account with the bank in order to be able to open an RD account with them online.
- Make sure that the RD scheme is flexible.
- The Net Banking layout and RD opening terms and conditions of each Bank might slightly vary. Hence, it is advisable to get in touch with your Bank to know more about opening an RD account online in that Bank.
Steps for Opening an Online Recurring Deposit Account
If you do not have a Net Banking facility enabled on your banking account, you can do so by getting in touch with the Bank and filling out a Net Banking registration form.
- Once your Net Banking is activated, log in to your account using your designated User name or ID and password in order to access your account online.
- Choose the option that allows you to open an RD account. While opening a Recurring Deposit account online, you will be required to provide details such as the amount which you wish to deposit each month and the Tenure of Deposit , i.e the period for which you wish to hold your Recurring Deposit scheme active.
- Once this is completed, you have to link your savings account to this account from which you can not only transfer the required funds to the account regularly, but also opt to place a standing instruction mandate to make the payment automatically, by the due date each month.
RD Article Pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes
- Monthly Recurring Deposit
- Co-operative Bank Recurring Deposit
- City Union Bank Recurring Deposit
- Indian Bank Recurring Deposit
- Union Bank Recurring Deposit
- UCO Bank Recurring Deposit
FAQs on How to Open a Recurring Deposit (RD) Online
- What is the minimum amount required for a recurring deposit account?
The minimum monthly instalment for an RD account is Rs. 100. Once the account is opened, the amount and number of instalments cannot be changed. This may differ from bank to bank.
- What is the minimum duration for an online deposit?
The minimum tenure for a deposit is 12 months, while the maximum is 120 months.
- Is it possible to open a Recurring Deposit (RD) account using Internet banking?
Yes, you can open an RD account through Internet banking if you have a username and password for Internet banking and at least one transaction account linked to your username.
- Under whose name will the Recurring Deposit (RD) account be opened? What is the mode of operation?
The name/names and mode of operation of the newly generated deposit account will be the same as the debit account from which the RD account is funded.
- How is the maturity amount calculated?
The maturity amount is calculated based on the instalment amount, tenure, and type of account selected by the customer. The maturity value of an RD is rounded off to the closest rupee value and paid either after 30 days from the deposit of the last instalment or on the expiration of the accepted deposit period, whichever is later.
- Can I inquire about it before opening an e-RD?
You can inquire about the maturity amount, maturity date, and rate of interest without opening an e-RD.
- Which types of accounts can be debited for the deposit amount?
You can debit a current account to open an RD account. The selected account for debiting should be a valid transactional account through the Internet Banking channel and should not be a stopped, dormant, or locked account.
- How can I cancel my standing instruction for e-RD?
You can cancel your standing instructions, set through Internet Banking, by accessing the 'View/Cancel' tab under e-Services.
- Can I transfer the maturity amount to any of my accounts?
No, the maturity amount or any amount that is payable before maturity will be transferred only to the debit account from which the initial deposit was funded.
- Is there a specific cut-off time for creating an e-RD online?
Yes, e-RD can be created online between 8:00 AM IST and 8:00 PM IST. Requests initiated outside this period will be scheduled for the next opening hours. This may differ from bank to bank.
- Is it mandatory to set standing instructions for periodic instalment payments of RD?
No, you can make the instalment payments at your branch or set up a standing instruction at the branch or through Internet banking at any time. Only the first instalment is paid online at the time of opening the RD account.
- Can I close my RD account online?
Yes, you can close your RD account online by using the 'Close A/c' tab under e-RD. This may vary for different banks. Please note that this option is only available for RD accounts created through e-RD and cannot be used for accounts opened through other means.
- What are the charges for the premature closure of an RD account?
The interest paid on premature withdrawal of term deposits may be lower than the contracted rate, as per the applicable rules on the date of premature payment.
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