Vijaya Recurring Deposit Interest Rates
Vijaya 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. Closure before maturity is based on contractual terms and the policies laid down by the bank.
The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account. This scheme helps in systematically saving through fixed monthly installments, as per your budget and financial goal.
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 who wish to save money
- 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.
Vijaya Recurring Deposit
An RD in Vijaya 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 Vijaya Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.
Key Features of Vijaya Bank RD Account
- Allows you to safely deposit 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.
- 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 than a savings bank account—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 Vijaya Bank:
Regular Recurring Deposit:
- Period of RD: 6 months to 120 months in completed 3 months.
- Preferential interest rate for senior citizens, for deposits of 1 year to 5 years.
- TDS on Interest is applicable
- Nomination facility available
- Premature Closure of RD Allowed
- Penalty will be applicable as per the rules and regulations for delayed remittances of instalments
- Pay by standing instruction for transfer of monthly instalments from savings bank account to RD account free of charge.
- The deposit once made should continue till the date of maturity.
V Genuth Unnathi Recurring Deposit:
- This product is designed to help parents build a corpus to meet the future educational needs of their children.
- Tenure range: The deposit period ranges from 36 months to 120 months
- Monthly instalments to be made in multiples of Rs.50
- Minors are eligible to apply, inclusive of those who are 18 years old.
- Children who have attained the age of 10 can open the account in their own names
- If the minor is below the age of 10, the account will have to be opened as ‘minor by guardian’ account
- Minimum monthly deposit is Rs.100 and in multiples of Rs.50
- Penalty will be levied as per extant rules for delayed remittances of instalments
- Premature closure allowed
- For children maintaining the RD Account for a minimum period of 5 years, a concession of 0.50% on the interest rate for Education Loan is offered. For girl child the interest concession is 1%
Vijaya Recurring Deposit Interest Rates
Vijaya Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a Vijaya Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of Vijaya Bank RD interest rates including Vijaya Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in Vijaya Bank, it is advisable to check with the bank directly.
Vijaya 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 revised and up to date interest rates as they fluctuate on a regular basis.
Vijaya 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.
Vijaya Bank RD FAQs
What is the eligibility criteria to open an RD account with Vijaya Bank?
Following are eligible to open an RD with Vijaya Bank:
- Individual (singly or jointly) with others.
- Minor who have attained the age of 10 years and above in his/her own name (proof of age required)
- Minors below the age of 10 years under guardianship of Natural/legal guardian.
- Proprietorship/Partnership Firm, Commercial Organization, Company / Corporate Body
- Hindu Undivided Family
- Association, Club, Society, Trust or Religious/Charitable Educational Institutions,
- Municipality or Panchayat, Government or Quasi-Government body.
- Illiterate and blind persons can also open accounts.
- Non-Residents (Ordinary) accounts
- Non-Residents (External) accounts
What is the minimum deposit period?
The minimum deposit tenure is 6 months and can go up to as high as 120 months.
How do I apply for a regular recurring deposit?
You can download the application form which is available on their website, fill it, and submit it at your nearest Vijaya Bank branch along with the required documentation.
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