Are you considering a savings plan for some expenses soon but unsure how to go about it? Opening an RD account online could help you save some funds periodically.
RDs are one of the most efficient and common saving tools in India.
In this article, we will learn about the steps to open an RD account online and grow your savings hassle-free!
In this section, we will offer a step-by-step guide to opening an RD account online. Please note that certain steps might change based on your bank.
We’ve tried covering the fundamental ones that are typical for most Indian banks to open an RD account online.
Step 1: Start by choosing the bank where you wish to open the RD account.
Step 2: Once you have finalized the bank, log into the bank’s official net banking portal using your credentials. You will get an OTP on your registered mobile number in case of certain banks to add an extra layer of security.
Enter the OTP and proceed.
Step 3: Find ‘Investment Services’ or ‘Saving Schemes’ in the net banking portal. Now find the ‘Recurring Deposit’ option under this menu.
Step 4: Choose the type of RD you wish to open from the list of options given.
Step 5: Fill out the recurring deposit opening form by providing all your particulars like the monthly deposit amount, frequency of interest payment, tenure, start date, etc.
Make sure that these details are correct because they will determine the terms of your recurring deposit.
Step 6: Set up payments through online banking or fund transfer.
Another option is to enable ECS. This gives your bank a standing order to deduct a certain amount every month and deposit that to the RD account.
Step 7: Review all the details, accept all the terms and conditions, and submit the form.
Step 8: Once you have successfully submitted the recurring deposit opening form, you will see a confirmation message on the screen. Simultaneously, you will also get an email with the RD receipt.
It will have all the necessary details of the RD account like the rates of interest and date of maturity.
In this section, we offer a step-by-step guide to help you open an RD account online using your mobile banking application.
Please note that certain steps might change depending on your bank’s app.
Step 1: Log into your bank’s app using the 4-digit or 6-digit PIN.
Step 2: From the homepage, go into the ‘Accounts and Deposits’ section.
Step 3: Now, click on the ‘Deposits (FD/RD)’ option.
Step 4: Choose the monthly sum you wish to deposit in the recurring deposit account.
Step 5: Select the tenure of maturity for the RD account.
Step 6: Select the mode of payment - Debit card/ECS/Net banking, etc.
Step 7: Accept the terms and conditions of the bank.
Step 8: Confirm the RD account creation.
Once the RD account is created, you will get a confirmation on your registered email with all the relevant terms and conditions for the RD.
Additionally, you can see the relevant data like simple/compound interest rates, date of monthly payment, penalties in case of non-compliance, etc.
Here is a list of things to consider before choosing a bank to start an FD account with -
Select the bank that offers the maximum interest rates on RD account opening. Currently, Deutsche Bank offers up to 8% interest rates p.a. for opening an RD account.
Sometimes, it is best to select a bank where you are an existing customer and already have a savings account. So you won’t face any friction to open RD account online as you can link it to your existing account.
There are multiple benefits of opening an RD account online, including:
Convenience: You can effortlessly manage the RD account online, without making bank visits.
Regular Savings: The automated monthly payments towards your recurring deposits create a sense of financial discipline and inculcate a saving habit.
Flexible Tenure: The opening of an RD account online enables you to choose the tenure for maturity based on your needs. You can also choose the monthly deposits and interest payment frequency based on your budget.
Opening an RD account online creates financial discipline in your life, without the hassles of visiting the bank or calling up customer care. Saving small and saving every day can lead you to financial freedom.
When it comes to the best RD account in India, the factors depend on your choices. If you focus only on the interest rates, the best bank is Deutsche Bank as it offers up to 8.0% interest p.a., whereas SBI Bank offers 6.5% - 7.0% interest p.a.
Yes. You can create an RD online through your bank’s website or mobile app. Most banks allow opening RDs between 8:00 AM IST to 8:00 PM IST.
Although it’s wise to not withdraw your RD before it matures, you can still do it anytime by paying a penalty. For more details, get in touch with your bank.
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