SBI (State bank of India) has launched e-RD. In this sharpcareer will try to provide to answer FAQs related to e-RD. But first what is Recurring Deposit. Recurring Deposit (RD) is a product to provide a person with an opportunity to build up saving through regular monthly deposits of fixed sum over a period of time.
20 FAQs of e-RD by SBI:
Yes, if you have Internet banking user name and password, and at least one transaction account mapped to the username.
The period of deposit shall be minimum 12 months and maximum 120 months.
The interest rates vary from time to time. You can view the latest interest rates by clicking on “View current interest rate” link provided in e-RD request page.
The minimum amount of monthly installment shall be Rs 100. The amount of installment and number of installment can not be changed after opening of the account.
The name(s) and mode of operation and branch of newly generated deposit a/c will be same as in debit a/c, from which RD a/c is funded.
The maturity amount is based on the installment, tenure & type of a/c selected by the customer. The maturity value of RD is rounded off to the nearest rupee and paid after 30 days /one month deposit of last installment or on the expiry of the period, for which the deposit was accepted, whichever is later. You may enquire the maturity amount, maturity date and rate of interest, without opening e-RD through “Enquiry” tab available in e-RD page.
You can debit a savings, current, or OD account to open RD account. The account selected for debiting should be valid transactional a/c through Internet Banking channel and should not be a stopped / dormant / locked account.
No, You may contact the branch for the same.
No, maturity amount or the amount payable before maturity will be transferred only to the debit account from which the first was funded.
e-RD with additional rate of interest for Senior Citizens will be issued if option for “Senior Citizen” is selected by the customer and age of customer is 60 Yrs or above, on the date of creating the recurring deposit, as per date of birth recorded with the Bank. The minimum tenure and minimum amount applicable for additional rate of interest for senior citizen will be as per Bank’s policy.
While opening an e-RD, you will be provided with an option to retain the nominee(s) for recurring deposit a/c as in debit a/c from which it is funded.
No, you will have to visit your branch for adding a new nominee.
Yes. e-RD can be created online from 8:00 AM IST to 8:00 PM IST. Requests initiated beyond this period will be scheduled for the next opening hours.
You may cancel your standing instructions, which are set through Internet Banking, by “View/Cancel” tab, under Request -> Standing instruction link.
No, you can pay the installment at your branch or you can also set the standing instruction at branch or through Internet banking anytime. Only your first installment is paid online at the time of opening of RD a/c.
Yes, you may close your RD a/c online through “Close A/c” tab under e-RD, which are created through e-RD only. RD a/c created through any other means can not closed through “Close a/c” tab under e-RD.
Interest will be applied on premature withdrawal of RD at 1.00% below the rate applicable for the period the deposit has remained with the bank.
Whenever a depositor fails to pay the installment on due date for three consecutive months the account shall not be closed and service charge of Rs 10/- is applicable. The penalty charged on delayed payment of instalment shall be
You can choose “Payback Principal and Interest” or “Convert to STDR” as maturity instruction for your e-RD. “Payback Principal and Interest” option will transfer the maturity proceeds to your debit account on maturity of e-RD. “Convert to STDR” option will create fixed deposit for period selected by you with the maturity amount of e-RD.
The RD account is subject to TDS.