Corporation Recurring Deposit Interest Rates
Corporation Bank Recurring Deposit
A Recurring Deposit (RD) is a safe and convenient way of saving money while also earning interest on it. An RD allows you to deposit a fixed amount on a regular basis with your bank, and it is similar to a Fixed Deposit (FD) in that you enjoy a higher rate of interest than a savings account for the same principal amount.
The major differentiator between an FD and an RD is that a recurring deposit allows you to make nominal monthly investments in the deposit (as per your budget), whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account.
Investing in a RD is often an ideal way to plan for short-term goals. You can use it to save money for the down payment of your dream car or house, save for your child’s education needs, or simply to save for your favorite phone.
Advantages to opening an RD account:
- Interest Rate earned is generally equal to that of an FD
- Safe and secure form of investment
- Secure from fluctuations and volatility
- Ideal for starters
- Ideal for people who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis
- Can be opened with small minimum amount.
- Lump sum received at maturity, including the interest
- The rate of interest is higher as compared to an ordinary saving bank account
- Flexible tenures to suit the budget of the individual
- Recurring Deposit Interest rate is fixed so you are assured of a fixed return
- Loan / overdraft facility available with some banks.
Corporation Recurring Deposit
An RD in Corporation Bank instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make these installments to a Corporation Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.
Key Features of Corporation Bank RD Account
- Best way to save a fixed sum every month for a fixed period of time as per your budget and get a lump sum amount on maturity, along with interest rate payable for the term.
- Allows you to safely deposit even small amount of money on a regular basis rather than a bulky one-time payment at opening of the RD.
- Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
- You can choose tenures which can range from a few months to several years depending on your financial goal
- Attractive interest rates
- Is a safe, low-risk form of investment.
- Quick liquidity options and access to your funds when you need it
Types of Recurring Deposits Offered by Corporation Bank:
Regular Recurring Deposit:
- Minimum Opening Balance for Corporation Bank RD account: Rs. 50 per month in Rural & Semi Urban Branches and Rs.100 per month at all other branches.
- No Maximum Limit on deposit.
- Interest is compounded quarterly, and credited to the account at the end of every financial year and paid on maturity.
- Period of RD: 12 months to 120 months in multiple of 1 month
- Preferential interest rate for senior citizens
- TDS on Interest is applicable
- Nomination facility available
- Premature Closure of RD allowed as per the rules laid down by the bank.
- Loan facility up to 90% on the deposit
Corporation Recurring Deposit Interest Rates
Corporation Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a Corporation Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of Corporation Bank RD interest rates including Corporation Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in Corporation Bank, it is advisable to check with the bank directly.
Corporation Bank recurring deposit interest rates 2015 – 2016
The current RD Interest rate ranges from 6% to 7% for normal Indian residents including minors and HUF. It is advisable to contact the bank directly for the revised and up to date interest rates as they fluctuate on a regular basis.
Corporation Bank Senior Citizen RD Interest Rates
Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for normal customers. For the latest revised or updated interest rates, it is advisable to contact the bank directly.
How to apply for an RD in Corporation Bank:
If you are not a Corporation Bank Customer, then you will need to open a Corporation Bank Savings Account in order to book a Corporation Bank RD. The savings account can be linked to the RD account. Opening one is simple and quick. You can visit your nearest branch and have a bank representative help you with the process.
Corporation Bank RD FAQs
What is the eligibility to open an RD account with Corporation Bank?
An Individual in his/her own name, jointly with others with suitable repayment instructions, minor represented by parents / guardian, clubs, societies, associations, educational institutions, trusts, firms, partnerships, joint stock companies, executors, administrators, HUFs, govt. departments, etc. are eligible to book an RD with the bank.
What is the minimum and maximum amount required to open an RD with Corporation Bank?
The minimum opening balance for RD accounts with Corporation bank is Rs. 50 per month in Rural & Semi Urban Branches and Rs.100 per month at all other branches.
What is the minimum deposit period?
The minimum deposit tenure is 12 months and can go up to as high as 120 months.
How do I apply for a regular recurring deposit?
If you are a new customer, you can start with opening a savings account, which can be linked with an RD account.
Alternately, you can visit your nearest branch and submit the Deposit Account form.
What is the documentation required to open an RD account?
You will require the following documents:
- Filled-in application form
- Passport size photograph
- Proof of residence, PAN Card, ID Proof
- Any other KYC documents as required by the bank