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Citibank Recurring Deposit Rate

It is important to have the habit of regular saving for future expenses, be it planned or unexpected. Banks offer various schemes to encourage customers to save in a systematic way to realize their dreams.

Recurring Deposit (RD) scheme is one such instrument that allows customers to deposit a fixed amount as monthly instalments for a fixed amount of time and earn interest on that. Since small amounts of money can be deposited regularly, recurring deposits are considered advantageous over fixed deposits, which require a lumpsum amount to be deposited.

Citibank Recurring Deposit Schemes

Citibank Recurring Deposit Rate

Citibank offers a convenient and safe way of depositing your money into recurring deposits and earn higher rate of interest. It allows opening recurring deposits on the Citibank Online banking or Citi Mobile smart banking app.

Benefits of Citibank Recurring Deposit Account

  • Safe and convenient way to operate recurring deposit accounts. Accounts can be opened online or on the Citi Mobile app
  • People with regular fixed income can open recurring deposit accounts to save their surplus money and earn interests higher than a savings bank account
  • Shorter tenures compared to other banks to give the customer quicker liquidity
  • Minimum monthly balance starting from Rs.1000/-
  • Higher rate of interest for long term recurring deposits
  • Option to set standing instructions at the time of opening the account

Features of Citibank Recurring Deposit Account

  • The minimum monthly instalment is Rs.1000/- and the maximum is Rs.20,000/-
  • Citibank offers recurring deposit tenures of 12 months to 24 months only. Shorter tenures offer quicker liquidity.
  • Tax deducted at source (TDS) is applicable when the interest income crosses Rs.40,000 in a financial year
  • Interest is calculated on a quarterly basis
  • Premature withdrawal allowed after deduction of corresponding penalty charges
  • Partial withdrawal is not allowed for Citibank recurring deposits
  • Automatic conversion of the maturity proceeds into a fixed deposit is not available with Citibank. You need to fill a fresh to open a fixed deposit with the maturity proceeds.
  • Senior citizens are offered a higher rate of interest

Who can open a Recurring Deposit account with Citibank?

Citibank Recurring Deposit Rates

Following are the people who can open and recurring deposit account with Citibank.

  • All Indian residents
  • Members of Hindu Undivided Families (HUF)
  • Private and public institutions
  • Trusts, clubs and societies

Citibank mandates that one needs to have a savings bank account in order to open a recurring deposit. However, it enables one to open a savings account on their website. Account holders are required to complete KYC documentation. All deposit accounts are linked to a customer’s Savings or Current account in order to give them the benefits of higher Net Relationship Value (NAV). Higher the NAV, better privileges on all your investments.

Citibank Recurring Deposit Interest Rates

Citibank has been offering banking and financial services in India for the past 20 years. They have features like online banking and the Citi mobile app that makes banking transactions safe and easy. They offer competitive interest rates on all their deposit accounts. The latest interest rates offered on recurring deposits is given below

TenureRecurring Deposit Interest Rate
365 – 400 Days6.25%           
401 – 540 Days7.00%           
541 – 731 Days6.00%           

Senior citizens are offered 0.50% additional interest on deposits below Rs.1 Cr.

For interest rates on deposits above Rs.1 Cr one can contact the nearest Citibank branch.

Higher Net Relationship Value Benefits

Account holders with higher Net Relationship Value (NAV) are offered special privileges for their investments with Citibank.

  • Preferential rates on loan processing fees & charges
  • Special offers and benefits offered regularly on investments
  • Debit cards with higher withdrawal limits
  • Credit cards with better credit limits
  • Dedicated relationship manager for all your queries

Advantages of Opening a Recurring Deposit Account

  • Instils the habit of regular saving among customers with regular fixed income.
  • Doesn’t require a lumpsum deposit at the time of account opening. A recurring deposit account can be opened with amount starting from as low as Rs.1000. Some banks have recurring deposit accounts that can be started with just Rs.100
  • Lump sum received at maturity, along with the accrued interest amount. This allows for saving for planned expenditures at the end of the tenure.
  • The rate of interest is higher as compared to an ordinary saving bank account
  • Tenures ranging from 6 months to 10 years
  • Recurring Deposit Interest rate is fixed so you are assured of a steady return
  • Loan / overdraft facility available with some banks.
  • Though the returns are lower compared to other forms of investment, a recurring deposit is safe and risk-free and offers quicker

Disadvantages of Opening a Recurring Deposit Account

  • Returns is higher only when invested for longer periods of time.
  • Though it offers quicker liquidity, premature or partial withdrawal attracts penalty charges, which results in lower returns
  • Recurring deposit interest earnings are taxable

Citibank Recurring Deposit FAQs

1.What is the minimum and maximum amount required to open a recurring deposit with Citibank?

The minimum opening balance for a regular recurring deposit with Citibank is Rs. 1000 and the maximum amount is Rs.20,000.

2. What is the minimum and maximum deposit period?

Citibank offers recurring deposit for a minimum tenure of 6 months and a maximum of 24 months.

3. How do I apply for a recurring deposit?

In order to open a recurring deposit account, you need to have a savings account. You can open a savings bank account either at your nearest branch or on the Citibank website. Once you have opened a savings account, with the online banking login ID and password, you can open a recurring deposit with internet banking or on the Citi mobile banking app.

4. Can I close my recurring deposit prematurely?

Yes, you can close your recurring deposit prematurely. However, interest will be calculated after deducting corresponding penalty charges.

5. Is partial withdrawal allowed on my recurring deposit?

No, Citibank does not allow partial withdrawal on your recurring deposit.

6. Can I instruct the recurring deposit to be converted to a fixed deposit upon maturity?

Upon completion of tenure, the maturity benefits shall be credited back to the savings account. The maturity benefits can then be converted to a fixed deposit by filling up the appropriate forms.

7. Can I avail an overdraft facility?

Right now, there is no overdraft facility for recurring deposits.

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