Pigmy Deposit Interest Calculator, Nidhi Bank, Daily Collection, EMI Collection Software, Pigmy Solution

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• A recurring deposit is a type of
term deposit which allows people
to save a fixed amount every
month.
• Banks and the Post Office offer
these schemes where people can
contribute a small sum to build a
fund, and also earn interest.
• This investment option works out
well for salaried individuals.
RECURRING
DEPOSIT
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RECURRING
Interest
The interest you earn on a
recurring deposit depends on
the amount you contribute
and the tenure of the deposit
The rates of interest offered
by banks is similar to the
interest rates offered on term
deposits.
DEPOSIT
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Tenure
The tenures offered will differ between banks. Usually the
minimum tenure is 6 months and the maximum tenure is
10 years.
Maturity
• Upon maturity, the bank will pay you the sum you have
saved plus interest accumulated.
• This money will either be paid in cash or be credited to
your bank account.
• The maturity value of your deposit will be indicated
when you open the RD account.
FEATURES OF
RD
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Loan options
Banks accept RDs as collateral to avail of loans. One can
take a loan of 80% to 90% of the value of the deposit.
Tax Deducted at Source
• Recurring Deposits recently were brought under taxable
income.
• With effect from June 2015, tax deducted at source
(TDS) is applicable on recurring deposits.
• If the interest on these deposits exceeds Rs. 10,000 per
annum, then 10% would be deducted at source.
FEATURES OF
RD
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Late Payments
• Banks levy a penalty if you miss the monthly
deposit by the due date.
• There are some banks that waive this penalty.
Premature Withdrawal
• Most RDs can be closed ahead of the maturity
date.
• A penalty charge plus a penalty on the interest
rate may be levied.
FEATURES OF
RD
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• Recurring deposits can be opened in two
ways.
• Approach your bank or the post office. You
need to fill out a form and may be required to
submit ID proof. You can then make the first
deposit and open the account.
• If your bank has internet banking facilities,
you can log into your account and open the
RD.
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HOW TO OPEN RD OR PIGMY
ACCOUNT?
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• You can visit your bank branch and make the
payment by or on the due date.
• You can set standing instructions to debit your
bank account with the monthly amount on the
due date.
•
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HOW TO FIND RD OR PIGMY
DEPOSIT?
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Recurring Deposits can be opened by all.
• Resident Indians
• Minors are eligible to apply under the
guardian.
• Sole proprietorships, Partnerships,
Corporations, Trust, societies, clubs etc.
• NRIs are also offered RD schemes.
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WHO CAN OPEN A RD OR
PIGMY?
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• 2 recent passport photographs
• Duly filled and signed application form
• KYC documents
• Other documents as requested by the bank
DOCUMENTS
REQUIRED
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• Recurring deposit encourages
regular savings habit among the people.
• Recurring deposit account holder can get
a loan facility.
• The bank can utilize such funds for lending to
businessmen.
• The bank may also invest such funds in
profitable areas.
ADVANTAGES
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