Understand how to open an RD account offline and online
“The art is not in making money, but in keeping it.” — Ancient Proverb
Are you holding back from buying the latest smartphone or true-wireless earphones? Are you worried about how quickly your monthly salary gets debited from your account? If the answer to any of these questions is ‘yes’, then we have a solution for you. You can open a recurring deposit.
A recurring deposit is a low-risk investment alternative for anyone looking to save up to achieve a short-term financial goal or reel in their free-spending tendencies.
Typically, when you open a recurring deposit, you have to deposit a particular amount regularly. This amount earns you interest. You can withdraw the principal amount, plus the interest on maturity. Let’s take a look at the different types of RDs.
Who says you have to stop dreaming about your life goals when you cross 60? A senior citizen’s recurring deposit gives the deposit holder, a higher interest rate than the regular deposit. So, even in your old age, you can plan your travel with the money you get when your RD matures!
You can take an individual out of India, but you cannot take the Indian out of the individual. Saving and investing money is a traditional Indian practice for which even an NRI will vouch. NRIs can open an RD through an NRI account.
Are you a freelancer with a good but fluctuating monthly income? Flexi RDs allow you to start an RD with a core lump sum amount. Then, as and when you can, you deposit variable amounts.
Now that you are hooked on to the idea of an RD, you may want to explore the various features and benefits of holding one.
In a recurring deposit, you can choose the tenure and amount. The number of years varies from one to another. Most banks offer between six months to ten years. To begin your RD, you can choose and amount from Rs. 100 onwards. Whether you are a college student saving up for a big summer trip or a young professional planning to buy the latest smartphone, there is a tenure and amount combination that will work for you.
You can give standing instructions to your bank on when to deposit the RD amount each month automatically. This way, you don’t miss a deposit and avoid paying a late fee.
It’s natural to want to ensure that your hard-earned savings are safe. That’s why your RD is insured by Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to ₹5,00,000.
Confused about how much you need to save and deposit every month and for how long to fund your child’s foreign education? If you are, you can use an RD calculator. Find out which combination of tenure and amount will help you reach your financial goal most realistically.
Well, the many features and benefits would have made you seriously consider opening an RD, right? Naturally, the next question would be, “how to open RD account?” It’s easy to open an RD account with a bank. You can do it offline by visiting the bank, or online through net banking or an app. Highlighted below are the steps for these processes:
If you are thinking that opening an RD account is very easy, then that’s right. It is a stress-free process with minimum documentation.
Let yourself dream big and plan realistically. Leverage the many benefits of a recurring deposit to live the life that you want.
Download DBS Bank app to open a recurring deposit and see your dreams take shape.