Open a Recurring Deposit Account with MDCC Bank
Start growing your savings systematically with MDCC Bank's Recurring Deposit (RD) account. Enjoy attractive interest rates and flexible tenures ranging from 6 months to 2 years. Secure your financial future by making small monthly deposits, and watch your savings grow with quarterly compounded interest.
Recurring Deposit
- Period – Min 1 year and Max 5 years
- Option – Growth (Cumulative quarterly)
- Interest Payable – On Maturity (Compounded quarterly)
- Pre closure – Less 1% from the applicable Rate of Interest for the run period
- Penalty on late payment : Charges – Rs.2/- per 100
- As applicable to Term Deposit Rates. Please click here to know the current rate of Interest
Eligibility
- Account can be opened in the names of individuals singly / jointly / with either or survivor options
- A minor with natural guardian
- The account will be opened on submission of the duly filled in application form along with the deposit amount in cash /cheque / withdrawal (transfer from SB)
Recurring Deposit FAQs
What is a Recurring Deposit (RD)?
A Recurring Deposit (RD) is a type of term deposit that allows individuals to deposit a fixed amount every month into their RD account. It helps in accumulating savings over a period of time while earning interest on the deposits made.
How can one open a Recurring Deposit account with MDCC Bank?
You can open a Recurring Deposit account by visiting any MDCC Bank branch if you are an existing customer. You will need to fill out an application form and provide necessary identification documents.
What is the minimum deposit required to open an RD account?
The minimum monthly deposit required to open an RD account with MDCC Bank is ₹500. You can choose to deposit higher amounts in multiples of ₹100.
What is the tenure range for an RD account?
MDCC Bank offers flexible tenures for RD accounts ranging from 6 months to 2 years or more. You can select a tenure based on your financial goals and savings plan.
What are the interest rates on Recurring Deposits?
Interest rates on Recurring Deposits at MDCC Bank are competitive and vary based on the tenure selected. The interest is compounded quarterly, providing better returns on your savings.
Can I withdraw my RD before maturity?
Yes, premature withdrawal of the RD is allowed; however, it may attract a penalty. The interest rate applicable will be the one prevailing for the actual period the deposit was held, minus the penalty.
Is there a nomination facility available for RD accounts?
Yes, MDCC Bank provides a nomination facility for RD accounts. You can nominate a person at the time of opening the account or update the nominee details anytime during the tenure of the RD.
What happens if I miss a monthly deposit?
If you miss a monthly deposit, a nominal penalty may be charged. Consistent missed payments could lead to the closure of the RD account, and the interest rate applicable will be adjusted accordingly.
Can I take a loan against my RD account?
Yes, MDCC Bank offers the facility to take a loan against your RD account. Generally, up to 80% of the RD amount can be availed as a loan. The interest rate for the loan will be slightly higher than the RD interest rate.
How is the interest on RD calculated?
Interest on the Recurring Deposit is compounded quarterly and added to the principal amount. This method helps in accumulating a higher return over the tenure of the deposit.
Can I change the tenure or the monthly deposit amount after opening the RD account?
No, once the RD account is opened, the tenure and monthly deposit amount cannot be changed. You can close the existing RD and open a new one with the desired terms.
How can I track my RD account?
You can track your RD account through MDCC Bank’s mobile banking app, or by visiting the branch. Regular updates are provided in the form of account statements.
Are there any tax benefits on RD accounts?
The interest earned on Recurring Deposits is taxable under “Income from Other Sources.” TDS (Tax Deducted at Source) will be applicable if the interest income exceeds the threshold limit set by the government. However, RDs do not qualify for deductions under Section 80C of the Income Tax Act.