Recurring Deposit: Get up to 8.5% annual interest on these RD schemes

Recurring Deposit (RD) is a popular option to make small savings. Apart from banks, finance companies also provide the facility of investment in RD. In this way, if small savings are made a habit of regular investment, even a small amount can easily create a corpus of lakhs. Apart from commercial banks, there are many non-banking financing companies (NBFCs) where customers can open RD accounts. One such company is Shriram City Union Finance Limited. This company is offering 8.50 percent annual interest on its 5 year RD.

According to the information available on the website of Shriram City Union Finance, the annual interest on 12 months Recurring Deposit is 7.03 percent, 24 months is 7.12 percent, 36 months is 8.18 percent, 48 months is 8.34 percent and 60 months is 8.5 percent. Shriram City Recurring Deposit has a MAA+/ rating with a stable outlook. It shows high credit quality.

If you do pre-mature withdrawal from Shriram City Finance’s RD (Recurring Deposit), then it is important to know how much profit or loss you will get, what are the conditions. According to the company’s website, the lock-in period of RD is 3 months from the date of deposit or renewal. There will be no repayment during this period. However, there is a provision for repayment in case the depositor dies. On the other hand, if you withdraw after 3 months and before 6 months, then the company will not pay the interest. In addition, withdrawals after 6 months and before the maturity date will get 2% less interest rate as applicable.

According to the company, some documents will have to be given to open an RD account. The customer has to provide self-attested ID proof, self-attested address proof, photograph, cancelled cheque. On maturity, there is a facility that the refund amount will be directly credited to the customer’s bank account. Investing in RD can be a better option for needs like children’s education fees, marriage.

Notably, there are many small finance banks on Recurring Deposit, which are offering interest up to 7.25 percent per annum on deposits of 5 years. For example, Ujjivan Small Finance Bank is paying 6.25 percent interest to regular customers and 7 percent to senior citizens on 5 year RD. Similarly, in Utkarsh Small Finance Bank, 5 year RD is getting 6.75 percent interest per annum for regular customers and 7.25 percent for senior citizens. At the same time, North East Small Finance Bank is offering 6.50 per cent annual interest to regular customers and 7 per cent per annum to senior citizens on 5-year RD.

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