How It Works
With a Recurring Deposit, you invest a fixed amount every month at a set rate of return. At the end of the term, the bank returns your principal plus the interest earned. It builds the habit of saving at the higher rates typically reserved for term deposits, while keeping your savings accessible — though because the rate is fixed, it doesn't adjust for inflation.
Maturity Period
Terms of 12, 36, or 60 months are available.
| Period | Interest Rate | Senior Citizen Rate | Commission/Brokerage |
|---|---|---|---|
| 12 months | 5.50% | 6.00% | 1.00% |
| 36 months & above | 7.50% | 8.00% | 3.50% |
Note: these figures, as published on this specific Schemes page, differ from the Special Recurring Deposit rates shown on the Interest Rates page (sourced from a separate page on the live site). This looks like outdated content on one of the two pages — worth confirming which rate is currently correct.
Who Can Open an Account
- An individual
- Joint accounts (Joint; Either or Survivor; Former or Survivor)
- A minor
Mode of Payment
- Joint account: paid jointly.
- Either or Survivor: paid to either party.
- Former or Survivor: paid to the former; if deceased, to the survivor.
- Payable to a guardian on behalf of a minor or a person of unsound mind, or directly to a minor aged 12 or above in their own name.
Deposit Rules
- 36 or 60 monthly deposits are required, per the bank's rules.
- Each monthly deposit must be a multiple of ₹10, with a minimum of ₹10.
- The first deposit is made when the account opens and sets the amount for every subsequent monthly deposit, due before the end of each calendar month.
- Deposits made by cheque, pay order, or demand draft are dated from their clearance date, not the date submitted.