Recurring deposit: How to open an RD account online – CNBC TV18

Recurring deposit (RDS) is a popular investment option for those looking for low -risk investment equipment with medium and assured returns. RD is introduced by several banks and NBFCs that help channels monthly savings for long or short -term corpus formation. This investment product is available from 6 months to 10 years in different periods of options.

It provides investors a disciplined way to save money regularly by depositing a fixed amount every month in a predetermined period, while earning interest on accumulated money. After the maturity period, the investor receives the total amount (ie, capital and earned interest).

It is a risk-free investment with guaranteed returns that can be used to achieve both short and long-term objectives. This investment device encourages savings by the need to make a fixed monthly investment. This is especially beneficial for salaried persons who have several financial goals to get on a certain salary.

How to open an RD account online

step 1: Log in your bank’s net banking account or application.

step 2: On your dashboard, select the ‘Open E-RD account’ option.

step 3: Specify the account number in which the installment should be debated, as well as the volume of the period and installment. In addition, check the applied RD interest rate and nominate a nominated person.

step 4:

After entering the maturity amount, click on the checkbox to confirm that you accept all the terms and conditions.

Step 5: A confirmation message will be displayed and the RD receipt will be sent to the registered email address.

Step 6: Then the amount stated will be deducted from the selected account.

Additionally, you can also open an RD account offline by visiting your nearest bank branch where you hold a savings account.

Documents required for opening RD account

To open RD account, you will need:

an application form.
Passport-shaped photo of the applicant.
ID and address proof.
KYC document.