South Indian Recurring Deposit Interest Rates
South Indian Bank Recurring Deposit
A Recurring Deposit is often recommended to those who wish to save a small amount of money on a regular basis and earn interest income on it. An RD is a safe and convenient way of saving money while also earning interest on it. Basically, you would be required to deposit a fixed amount for a stipulated period with your bank. It is similar to a Fixed Deposit account—you enjoy a higher rate of interest than a savings account for the same principal amount.
With an RD, you need to make ongoing periodic investments in the deposit, unlike with an FD, where you would be required to deposit the entire lump amount at the time you open the FD account.
Advantages to opening an RD account:
- Interest Rate earned in similar to that of an FD
- Secure from market fluctuations and volatility
- Ideal for salaried people, businessmen, housewives, minors, senior citizens etc.
- Ideal for people who cannot deposit a large initial lump sum, but wish to save by depositing small amounts of money on a regular basis
- Can be opened with minimum investment
- Lump sum received at maturity, including the interest
- Flexible tenures to suit the budget and financial goals of the individual
- Loan / overdraft facility available with some banks.
South Indian Recurring Deposit
An RD in South Indian 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 South Indian Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.
Key Features of South Indian Bank RD Account
- instead of a onetime lump-sum investment, you can make a fixed monthly investment for a specified period of time.
- 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.
- Flexible tenure – you can choose tenures which can range from a few months to several years depending on your financial goal
- Attractive interest rates: Offers a higher rate of interest—similar to an FD—but with a smaller ongoing investment.
- Is a safe, low-risk form of investment.
- Quick liquidity options and access to your funds when you need it; nominal penal charges apply.
Types of Recurring Deposits Offered by South Indian Bank:
Regular Recurring Deposit:
- Minimum Opening Balance for South Indian Bank RD account: Rs. 100 and above
- Period of RD: 1 year to 10 years
- Preferential interest rate for senior citizens
- Overdraft facility up to 90 % of the deposit balance.
South Indian Recurring Deposit Interest Rates
South Indian Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a South Indian Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of South Indian Bank RD interest rates including South Indian Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in South Indian Bank, it is advisable to check with the bank directly.
South Indian Bank recurring deposit interest rates 2015 – 2016
The current RD Interest rate ranges from 5% to 7% for normal Indian residents including minors and HUF. It is advisable to contact the bank directly for the most up to date and revised interest rates as they can fluctuate on a regular basis.
South Indian 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 South Indian Bank:
If you are an existing South Indian Bank Customer, then you can book an RD through internet banking. You just need to login to your net banking account for easy booking of Recurring Deposits.
If you are not a South Indian Bank Customer, then you will need to open a South Indian Bank Savings Account and have it linked with an RD account.
Alternatively, you can visit your nearest South Indian bank branch and submit the application form (available on the website) along with the required documentation.
South Indian Bank Recurring Deposit Calculator:
You can make use of any trusty online RD Calculator to compute the interest and the maturity earned on your invested amount. Using an RD Calculator is easy—the calculator does all the number crunching and hard work to provide you with the maturity amount that you get at the time of maturity of the Recurring Deposit. Using an RD calculator helps you find out how much you need to save. You can try various amount and opt for the one that suits your budget.
South Indian Bank RD FAQs
What is the eligibility criteria to open an RD account with South Indian Bank?
Individuals, singly or jointly with others, minors independently or under guardianship of their parent or legal guardian, Proprietorship/Partnership Firm, Commercial Organization, companies, societies, associations, clubs, HUFs, trusts, charitable organizations, senior citizens, Illiterate and blind persons, etc., are eligible to open an RD account with South Indian bank.
What is the minimum amount required to open an RD with South Indian Bank?
The minimum opening balance for a regular recurring deposit with South Indian Bank is Rs. 100.
What is the minimum deposit period?
The minimum deposit tenure 1 year and can go up to as high as 10 years.
How do I apply for a regular recurring deposit?
You can open a Regular Recurring Deposit online if you are an existing customer. You can log in to your net banking account and open an RD from the convenience of your home.
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 application 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
Is overdraft facility available?
Yes, overdraft facility up to 90% of the deposit balance can be availed.