What Is a Recurring Deposit?

A recurring deposit (RD) is a financial instrument offered by banks and non-banking financial companies (NBFCs) that allows individuals to save a fixed amount of money every month for a predetermined tenure. At the end of the tenure, the accumulated amount, along with interest, is returned to the account holder.

Think of an RD as planting a tree. You water it consistently (monthly deposits), and over time, it grows into a strong, fruitful tree (your maturity amount). This disciplined approach to savings ensures you build a habit of regular investment while earning secure returns.

Recurring deposits are often favoured by individuals who want to save for specific goals, such as a holiday, wedding, or higher education. Compared to other financial instruments like fixed deposits or mutual funds, RDs are low-risk and suitable for conservative investors.

Recurring deposits are simple yet effective financial tools. Here is a step-by-step breakdown of how they work:

1. Opening an RD Account: You begin by choosing an RD account with a bank or NBFC like Bajaj Finserv.
2. Choosing the Tenure: Decide the duration of your RD, which typically ranges from 6 months to 10 years.
3. Monthly Deposits: Commit to depositing a fixed amount every month. This amount cannot be changed during the tenure.
4. Interest Calculation: The interest on your RD is calculated based on the deposit amount, tenure, and applicable interest rate. Bajaj Finserv offers competitive rates to maximise your returns.
5. Maturity: At the end of the tenure, you receive the total amount deposited along with the accrued interest.

Bajaj Finserv stands out as a trusted name in the financial sector, offering several advantages to RD account holders:

• Attractive Interest Rates: Earn higher returns with competitive interest rates.
• Flexible Tenure Options: Choose a tenure that aligns with your financial goals, ranging from 6 months to 10 years.
• Online Account Management: Open, manage, and track your RD account conveniently through Bajaj Finserv’s online portal or mobile app.
• Automatic Payments: Set up standing instructions for hassle-free monthly deposits.
• Senior Citizen Benefits: Exclusive higher interest rates for senior citizens.
• Customised RD Plans: Options for regular, minor, senior citizen, and NRI accounts to cater to diverse needs.

Bajaj Finserv provides multiple RD account options tailored for different customer segments. The table below highlights the features of each type:

Regular RD accounts are designed for individuals who want a disciplined savings approach. Key features include:

• Fixed monthly deposits with flexible tenure options.
• Guaranteed returns, making it a low-risk investment.
• Suitable for salaried individuals aiming to save for short- or long-term goals like travel or education.

Senior citizens enjoy exclusive benefits with Bajaj Finserv RD accounts, such as:

• Higher interest rates compared to regular RDs.
• Reliable and stable returns, ensuring financial security during retirement.
• Flexible tenure options to suit varying financial needs.

Bajaj Finserv also offers RD accounts for minors, allowing parents to secure their child’s financial future.

• Parents or guardians can open an account on behalf of minors.
• Helps inculcate the habit of saving from an early age.
• Ideal for building a fund for education or other future expenses.

Bajaj Finserv caters to NRIs with specialised RD accounts that offer:

• Dual currency support for seamless transactions.
• Flexible deposit options to suit the financial goals of NRIs.
• Convenient account management from abroad through online platforms.

Opening an RD account with Bajaj Finserv is a straightforward process. Follow these steps:

1. Eligibility Check: Ensure you meet the eligibility criteria for the desired RD account type.
2. Document Submission: Gather necessary documents like PAN card, Aadhaar card, and KYC proof.
3. Account Selection: Choose the type of RD account that suits your needs.
4. Application Process: Submit your application online or visit a branch.
5. Initial Deposit: Make the first deposit to activate your account.

1. Visit the Bajaj Finserv website or download the mobile app.
2. Log in or register using your credentials.
3. Navigate to the RD section and select the desired account type.
4. Fill in the required details and upload necessary documents.
5. Make the initial deposit through a secure payment gateway.

1. Visit your nearest Bajaj Finserv branch with the required documents.
2. Fill out the RD application form with accurate details.
3. Submit the documents and make the initial deposit.
4. Receive confirmation of your account activation.

Bajaj Finserv offers competitive RD interest rates to maximise your returns. Below is a comparison of Bajaj Finserv’s rates with other providers:

> Disclaimer: Interest rates are subject to change. Please check the official website for the latest rates.

• PAN card
• Aadhaar card
• Passport-size photograph
• Proof of address (utility bill, passport, etc.)
• For NRIs: Overseas address proof and passport copy

Bajaj Finserv’s digital tools make RD account management effortless:

• Track your account balance and maturity amount.
• Download account statements with a few clicks.
• Set up automatic payments for monthly deposits.
• Submit service requests, such as nominee updates, online.