Build up your savings systematically with monthly fixed deposits over a period of time. Avail syndicate bank’s Recurring deposit options to save money and earn interest on your payments. Continue reading to see what the syndicate bank recurring deposit options have to offer!
Syndicate Bank RD Interest Rates for different Periods
|Investment period||RD rates for regular deposit||RD rates for Senior Citizens|
|1 year 1 day to 2 years||6.50%||7.00%|
|2 years 1 day to 4 years 364 days||6.50%||7.00%|
|5 years 1 day to 10 years||6.00%||6.50%|
Syndicate Bank Recurring Deposit Interest Rates
- RD interest rates offered are upto 6.80 %, compounded quarterly
- Minimum deposit starting from Rs100 is accepted by Syndicate bank.
- RD rate upto 7.30% is offered to senior citizens
Syndicate Bank Recurring Deposit: Special Features
- Nomination facility is available to any family member or spouse can be nominated to receive the final amount
- Loan facility up to 95% of the RD amount can be availed.
- The deposit period ranges from 12 to 120 months.
- The minimum account that can be deposited is Rs 100.per month.
- Compounding is done quarterly on the monthly minimum balance.
- TDS deductions will be as per existing income tax rules at the time of RD account opening.
- These services can be easily availed at your nearest syndicate bank branch.
Syndicate Bank Recurring Deposit: Is it the best way to save?
Saving a specific amount of money every month can lead to a substantial amount fas emergency fund in the long term.Recurring deposit options can be availed to do so. However, they are not the best saving option if wealth creation is the objective. Let’s see you plan on saving for your retirement. A Recurring Deposit with 6.8% interest rate may not give you the returns needed to create a substantial retirement fund. However, depositing the same amount in a Mutual Fund as SIP (Systematic Investment Plan) can help you create the kind of wealth you are aiming for.
The Benefits of Investing in SIPs
- A small amount of money that can be as low as Rs 500 has to be deposited by you every month or every quarter.
- On the basis of your budget and investment goal, your money will be invested in debt or equity funds. In the past decade, Equity Linked mutual funds have performed well in the market with a return of 12-22%. This will give significantly higher returns than recurring deposits.
- There is no penalty on money withdrawal from SIP account. This means that SIPs have higher liquidity when compared to recurring deposits that levy a penalty on premature withdrawal.
- Returns from SIPs which invest in Equity Linked Mutual Funds (ELSS) are exempt from tax. The gains from an RD is taxable.
Syndicate Bank RD: Eligibility Criteria
- To open the account, the person must be an Indian resident or a HUF ( Hindu Undivided Families)
- Non-resident Indians can also open an RD account through NRO and NRE accounts
- Minors can also open an RD account under the guardianship of parents as financial supervisors.
Syndicate Bank: Premature Withdrawal
Syndicate bank allows account holders to prematurely withdraw money but a nominal amount of penalty might be levied on based on the scheme chosen. However, partial withdrawal of amount is not allowed.
Tax Benefits on Syndicate bank Recurring Deposit
All recurring deposits, including Syndicate bank recurring deposit, are taxable under the Income Tax Act 1961. The money that is invested in RD will be included in your yearly income and a TDS ( Tax Deducted at Source) of 10% is applicable on the interest earned ( If it is more than (if it is more than RS. 10,000 per year).To save TDS on your RD gains, you can fill either Form 15G or Form 15H.
Conditions for submitting Form 15G:
- You are an individual or HUF
- You must be a Resident Indian
- You should be less than 60 years old
- Tax calculated on your Total Income is nil
- The total interest income for the year is less than the minimum exemption limit for that year, which is Rs 2,50,000 for the financial year 2016-17
Documents Required to Open Syndicate bank RD Account
Proof of identity
- PAN card
- Voter ID card
- Driving License
- Government ID card
- Photo ration card
- Senior citizen ID card
- Telephone bill
- Electricity bill
- Bank statement with cheque
- Certificate /ID card issued by the post office.