Learn how to open an online recurring deposit account through Online SBI, with a simple step-by-step guide.
Recurring Deposit is a special kind of Term Deposit which helps you to deposit a fixed amount every month in your Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.
It is similar to making FDs of a certain amount in monthly instalments, for example ₹ 1000 every month. This deposit matures on a specific date in the future along with all the deposits made every month. Thus, Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time. Minimum Period of RD is 1 Year and maximum is 10 years.
In this video we will also show you how to create Standing Instructions in your account. You do not need to manually fund your Recurring Deposit every month, instead the Recurring Deposit can be funded by Standing Instructions which are the instructions by the customer to the bank to withdraw a certain sum of money from his Savings/ Current account and credit to the Recurring Deposit account every month.
