Question regarding Recurring deposit

DCEite · 2nd April 2009, 21:41

Hi Team

I had this query regarding bank recurring deposit (RD).

Suppose one has salary account with bank A (private bank) and wants to open a recurring deposit with bank B. Bank B is a nationalized bank and he already has a savings account in this bank.
What is the procedure for opening a recurring deposit of a certain duration in the nationalized (PSU) bank? Will the bank accept post-dated cheques of bank A from the person for the RD installments? Or is ECS an option ? Or is it that the person has to make monthly visits to the bank B to deposit the RD installment ?

Inputs are appreciated.

theMAG · 2nd April 2009, 22:25

RD payments can be in any form that Bank B accepts - either TCS or PDC. The RD account has defined durations (and interest applicable)- you can chose a duration from that that makes sense. Its % interest rate is comparable to FD.

muni · 2nd April 2009, 22:50

Most of the nationalised banks accept ECS if you are in a tier 1 / tier 2 city and you can access your deposit details online.

Please check for the compounding frequency which usually is quarterly.

2nd April 2009, 21:41	#1
DCEite Senior - BHPian Join Date: Sep 2004 Location: NCR Posts: 3,588 Thanked: 3,484 Times	Question regarding Recurring deposit Hi Team I had this query regarding bank recurring deposit (RD). Suppose one has salary account with bank A (private bank) and wants to open a recurring deposit with bank B. Bank B is a nationalized bank and he already has a savings account in this bank. What is the procedure for opening a recurring deposit of a certain duration in the nationalized (PSU) bank? Will the bank accept post-dated cheques of bank A from the person for the RD installments? Or is ECS an option ? Or is it that the person has to make monthly visits to the bank B to deposit the RD installment ? Inputs are appreciated.
	() Thanks

2nd April 2009, 22:25	#2
theMAG Distinguished - BHPian Join Date: May 2006 Location: Avon, CT Posts: 7,196 Thanked: 1,821 Times View My Garage	RD payments can be in any form that Bank B accepts - either TCS or PDC. The RD account has defined durations (and interest applicable)- you can chose a duration from that that makes sense. Its % interest rate is comparable to FD.
	() Thanks

2nd April 2009, 22:50	#3
muni BHPian Join Date: Jan 2005 Location: Bangalore Posts: 607 Thanked: 216 Times View My Garage	Most of the nationalised banks accept ECS if you are in a tier 1 / tier 2 city and you can access your deposit details online. Please check for the compounding frequency which usually is quarterly.
	() Thanks