Recurring Deposits

The main features of these deposits are

• The customer deposits a certain sum of amount pre-fixed frequency (generally monthly/quarterly) for a specified period (1 2 months to 1 20 months).

• The interest rate payable on recurring deposits is pre-fixed and it is generally a liffle lower than the fixed deposit rate for the same period.

• The total amount deposited, along with the interest, is repaid on the maturity date.

• Depositor can take a loan or advance against the deposits or have the deposit pre-paid before the maturity, for meeting emergent expenses. In the latter case, the interest rate payable by the bank would be lower than the contracted rate and some penalty would also be charged.