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  Recurring Deposit (RD)

An RD is a good investment avenue for risk-averse investors who want to invest money every month. RDs also help fulfill both short-term and long-term goals. Since the returns are assured, you can strategize across all time-frames. RDs can also be an ideal instrument to build an emergency fund.

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Is RD interest taxable?: Recurring Deposits attract no tax exemptions. Income tax has to be paid on the Interest amount received from Recurring Deposits. The tax has to be paid at the rate of the tax slab of the RD holder.

FAQs on Recurring Deposit

  1. Is interest earned on recurring deposit taxable?

    Yes, the interest earned recurring deposit is taxable.

  2. Is Tax Deduction at Source (TDS) applicable on the interest earned on Recurring Deposits?

    Yes, TDS of 10% is applicable on the interest earned on Recurring Deposits. The TDS will deducted if the interest earned on the Recurring Deposits is more than Rs.10,000.

  3. What is the minimum tenure for Recurring Deposit?

    The minimum tenure for Recurring Deposit (RD) differs from bank to bank. Most banks offer RD schemes for a minimum tenure of 6 months or 12 months.

  4. How much interest can I earn through a Recurring Deposit account?

    The interest rate for Recurring Deposit differs from bank to bank. The amount of interest that you can earn depends on the amount you have deposited in the RD account, the tenure of the RD and the interest rate offered by your bank for that tenure.

  5. What is the minimum amount required for opening a Recurring Deposit account?

    The minimum amount required for opening a Recurring Deposit account varies for every bank and it can be as low as Rs.10

  6. Who can open a Recurring Deposit (RD) account?

    Anyone can open a Recurring Deposit (RD) account. Some banks allow people to open a joint RD account and people can also open this account in the name of their minor child.

  7. How do banks calculate the maturity amount?

    The maturity amount is calculated by banks on the basis of the instalment, account type and tenure chosen by the depositors.

  8. Do Senior citizens receive extra benefits on their Recurring Deposits?

    Yes, generally banks in India provide an additional interest rate on Recurring Deposits to senior citizens.

  9. Can I withdraw my Recurring Deposit before the term is over?

    Yes, you can withdraw your Recurring Deposit before the term is over. However, banks generally do not permit partial withdrawal.

  10. Can I add nominees in my Recurring Deposit account?

    Yes, you can add nominees in your Recurring Deposit account.

  11. How can a depositor withdraw the principal amount deposited before its maturity in a recurring deposit account?

    A depositor can submit an application to the bank requesting premature withdrawal of the recurring deposit account. The return on the principal amount invested by the depositor will only be provided for the period the money was deposited in the recurring deposit account in the bank. The interest rate will also be applicable for the same term period.

  12. Can tax be saved on recurring deposits?

    Yes, tax can be saved on recurring deposits if the money is deposited for a medium-term or long-term tenure in the recurring deposit account.

NCB SAHYOG SCHEMES

NCB Sahyog Gullak Scheme

Who can become a member?

An individual residing in India, above 18 years of age is eligible become a member with NCB Sahyog Credit
Requirements:

  1. Two Latest Photographs

  2. Proof of Residence (Passport, Driving License, Ration Card, Voters Card, Electricity Bill, Aadhar Card etc.)

  3. Photo Identity Proof

  4. Membership Fees of Rs 110/-

RTICULAR                                                                    TERMS 

PERIOD                                                                   12 MONTHS              24 MONTHS              36 MONTHS 

FREQUENCY OF TRANSACTION                          MONTHY                      MONTHLY                MONTHLY

RATE OF INTEREST                                                   7.00%                                8.00%                         9.00

INTEREST PAYABLE                                       MONTHLY COMPOUNDINF            MONTHLY COMPOUNDINF                    MONTHLY COMPOUNDINF  

Terms & Conditions:

  1. Gullak intial deposit will be Rs. 300 Minimum.

  2. Gullak Charges Rs. 140/- (Rs. 100 for Gullak & Rs. 40/- for Membership) to be deposited.

  3. Premature withdrawal is applicable only after three years.

  4. Irregular Account will be charged @2% Per Month.

  5. Note: The Commencement of Investment will take place on the day of approval of the application from which may take 7-10 Working days.

NCB Sahyog Monthly Income (MIS)

Who can become a member?

An individual residing in India, above 18 years of age is eligible become a member with NCB Sahyog Credit


Requirements:
 

  1. Two latest photographs

  2. Proof of Residence(Passport, Driving License, Ration Card, Voters Card, Electricity Bill, Aadhar Card etc.)

  3. Photo Identity Proof

  4. Membership Fees of Rs 110/-

PARTICULAR                        TERMS 
PERIOD                                                 1 YEAR             2 YEAR                  3 YEAR                3 YEAR 4 MONTHS

FREQUENCY OF TRANSACTION       ONE TIME      ONE TIME           ONE TIME                 ONE TIME

RATE OF INTEREST                                09.00%             09.50%                      10.50%                      12.00%

INTEREST PAYABLE       MONTHLY COMPOUNDINF         MONTHLY COMPOUNDINF  MONTHLY COMPOUNDINF  

Terms & Conditions:

  1. MIS would start with Rs. 10000 and with it's multiples.

  2. All Monthly Income Schemes will attract a simple rate of interest.

  3. No Premature withdrawl allowed in MIS.

NCB Sahyog Special bond

Who can become a member?

An individual residing in India, above 18 years of age is eligible become a member with NCB Sahyog Credit
Requirements:

  1. Two latest photographs

  2. Proof of Residence(Passport, Driving License, Ration Card, Voters Card, Electricity Bill, Aadhar Card etc.)

  3. Photo Identity Proof

  4. Membership Fees of Rs 110/-

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PARTICULAR                        TERMS 
PERIOD                               15 MONTHS            18 MONTHS          21 MONTHS             6 YEAR Double Bond 

FREQUENCY OF                  ONE TIME                 ONE TIME              ONE TIME                 ONE TIME
TRANSACTION  

RATE OF INTEREST                   09.60%                     10.66%                     12.00%                           12.25%

INTEREST PAYABLE              On Maturity          On Maturity       On Maturity    On Maturity

Terms & Conditions:

  1. Opening of Recurring account with minimum of Rs. 300 and further in multiple of Rs. 100

  2. Interest calculation monthly compounding.

  3. Defaulters will be charged at the rate of 2% per month per installment with a maximum period of three months. After this the total deposit will be inoperative and no interest will be given to member.

  4. The monthly deposit of installment will attract a grace period of 5 working days, after which the RD will be counted as an irregular account and will attract an extra charge as mentioned above.

  5. The amount of maturity will be paid after one month of the last installment has been paid or the date of payment whichever is later.

  6. The facility of premature payment is not available for irregular accounts. Even if one installment is not paid, the account will be considered as irregular account. On receipt of all the due installments, it will come under the category of a regular account.

Note :

  1. Customer will have to pay minimum 12 installments in a period of 12 months, failure to which he/she shell not be eligible to claim even his/her principle amount.

  2. The commencement of Investment will take place on the day of approval of the application form which may take 7-10 working days.

  3. ​

Premature Terms and Conditions : 

  1. 36Months – No Premature withdrawal is allowed upto 36 months.

  2. 60 Months – Premature withdrawal is allowed only after completion of 36 months where an investor will attract only a simple ROI @ 5% p.a.

  3. 72 Months – Premature withdrawal is allowed only after completion of 36 months where an investor will attract only a simple ROI @ 6% p.a.

3) AISHWARYA PENSION SCHEME :

4)  NCB  Smart Business  Special RD  Savings 
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