Saving money is an important criterion for every individual. With HDFC’s Recurring Deposit option, you can now save money in regular installments and earn interest on your payments. For more details on HDFC’s Recurring Deposit, read on!
|Investment period||RD rates for regular deposit||RD rates for Senior Citizens|
It is important to create a rainy-day fund for emergencies and saving a small amount every month can go a long way in ensuring you are well covered for the future. A Recurring Deposit is one way of creating this emergency fund. However, it is not the best way to make money of your surplus savings. If you are comfortable with depositing money in regular installments, then you can also opt for a Mutual Fund as SIP (Systematic Investment Plan) to create more wealth.
The minimum deposit amount can be as low as Rs. 500 for a Mutual Fund. In fact, you can choose plans where the deposits are made every quarter, or every month as per your convenience
HDFC Bank has some rules for users who wish to prematurely withdraw money from their RD account. However, partial withdrawal of the amount is not allowed.
All Recurring Deposits, including HDFC Recurring Deposit, are taxable under the Income Tax Act 1961. The money that is invested in the RD account is counted as part of your yearly income and a TDS (Tax Deducted at Source) of 10% is applicable on the interest earned (if it is in excess Rs. 10,000 for the financial year). To save TDS on your RD gains, you can fill either Form 15G or Form 15H.
Conditions for submitting Form 15G:
Conditions for submitting Form 15H:
1. Proof of Identity
HDFC Bank offers two different types of Recurring Deposit schemes. These are:
Regular Scheme: This is a normal RD account that is created for the general purpose of saving money. The tenure of this account can go up to 10 years, and the minimum monthly investment amount can range from Rs. 1000 to Rs. 14,99,900 per month. For an NRI user, the minimum tenure is 12 months.
NRE Recurring Deposit Scheme: This is an excellent way for NRIs to invest and save money for the long term. This RD account has the same interest rate as an NRE fixed deposit account. The principal and interest from the RD account are both tax-free (in India) and the total is fully repatriable.
The RD interest rate in India can vary from bank to bank and depends on the kind of RD scheme chosen, the tenure of deposit, and the monthly deposit amount. Generally, the interest rates are higher when the RD tenure is above 15 months. Also, some banks may offer high RD interest rates for senior citizens and women.
|State Bank of India||HDFC Bank||ICICI Bank||Axis Bank|
|Indian Bank||RBL Bank||IDBI Bank||IDFC Bank|
|Corporation Bank||Andhra Bank||PNB Bank||Canara Bank|
|Union Bank of India||Central Bank||Bank of India||Bank of Baroda|
|Syndicate Bank||Allahabad Bank||Kotak Mahindra Bank|