Features of Recurring Deposit Account
Recurring Deposit
Interest On Deposits remained Constant
| Month | Interest |
| 10 | 6 % |
| 12 | 6 % |
| 13-30 | 7 % |
1. The main objective of recurring deposit account is to develop regular savings habit among the public.
2. In India, minimum amount that can be deposited is Rs.10 at regular intervals.
3. The period of deposit is minimum six months and maximum ten years.
4. The rate of interest is higher.
5. No withdrawals are allowed. However, the bank may allow to close the account before the maturity period.
6. The bank provides the loan facility. The loan can be given upto 75% of the amount standing to the credit of the account holder.