1. Recurring Deposit is a kind of term deposit , which help people with regular income to deposit a fixed amount every month and earn interest at the rate applicable to Fixed Deposit.
2. Customer can give instruction to the bank to withdraw money from his / her bank account and credit it to the RD Account every month.
3.Customer should pay monthly installment regularly on due dates . If any installment is delayed then interest earned will get reduced and would not reach the maturity value.
4. Interest is compounded quarterly.
5. One can get loans on collateral of Recurring Deposit upto 80 to 90 % of the Deposit value.
6. TDS is not applicable on RD.
7. Income tax is to be paid on interest earned through RD , depending on the tax payer slab.