Thinking about where to invest your money to meet your short-term as well as long-term financial needs? Forget about your Savings Account and check out the awesome RD schemes offered by banks in Nepal. Let's understand some basics of RD. A Recurring Deposit (RD) is a type of term deposit offered by banks and financial institutions. It allows individuals to save a fixed portion of their income(money) regularly over a predetermined period. RDs are considered a safe and stable investment option, suitable for those looking to accumulate savings gradually. Recurring Deposit schemes aim to inculcate a regular habit of saving among the
public.Popular types of RD in NepalRegular Recurring Deposit: This is the standard type of RD, where the depositor makes regular fixed deposits at monthly intervals. The interest rate is usually fixed at the time of opening the RD account and remains constant throughout the tenure.Pensioner Recurring Deposit: It is a specific type of recurring deposit account designed for pensioners, typically senior citizens who receive a regular pension. Features of Recurring Deposit (RD)RD offers you a fixed interest on the invested amount at a specific frequency till maturity.The Minimum amount that can be deposited varies from bank to bank. It can be an amount as small as Rs.500.The minimum period of deposit starts at three months, and the maximum period of deposit is ten years.The rate of interest is more than that offered for a Fixed Deposit and is hence higher than any other Savings Scheme.Premature withdrawal & mid-term withdrawals are mostly not allowed by banks but, can be withdrawn by paying a certain penalty.RD offers the additional benefit of taking a loan against the deposit, i.e., using the deposit as collateral. About 80% - 90% of the deposit value can be given to the account holder as a loan. It varies from bank to bank.The Recurring Deposit can be funded periodically through Standing Instructions, which are the instructions given by the customer to the bank to credit the Recurring Deposit account every month/quarter from their Current or Savings Account.Basic eligibility Criteria for Recurring DepositAny individual is Eligible for availing RD.Minor is also eligible to open RD under the guardianship of a natural or legal guardian.Any corporate company, proprietorship, or commercial organization.Any government organization.Documents Required for Recurring Deposit (RD)The Application form can be obtained from the bank you select to open the recurring deposit account.Passport-size photographs of the applicant.Identity proof (Citizenship/passport) of the applicant's willing to open the RD account and some banks may ask for their Nominee's identification and photo.Other documents if the bank requests them. To know bank wise features, eligibility criteria, documents required, benefits and interest rate on RD Click Here.Important factors to consider while making RD investment in Nepal.Interest Rate Offered on the Recurring Deposit AccountTerm Period of the Recurring Deposit AccountRelated benefitsFacility of Premature Withdrawal in the Recurring Deposit Account How Saral Banking Sewa will help you?Saral Banking Sewa enables you to compare and choose the suitable recurring deposit account with the best rate and benefits . Also, we help you to connect with banks for quick and easy account opening. Further, our team actively seeks ways to ‘saralify’ your banking experience. If you require assistance from us, throughout your banking processes, we’re always here for you.Contact us:WhatsApp/Viber: 9851361107Telephone No.: 01-5269107 If you found this Blog helpful, please share this blog with your family members and friends.If you have any feedback, please feel free to leave a comment in the section below. Connect with us for Banking updates onFacebook Instagram
