Friday, June 29, 2012

Savings And Investment Scheme Guide For Indian Poor And Middle Class:Bank Recurring Deposits

What Scheme Mean?
A bank Recurring deposit is a type of deposit wherein one save pre defined sums of money every month in an account for a fixed tenure.It earns high compound interest.

Eligibility
As to be resident of India with Saving bank account

Entry Age
18 years and above
Minor with natural guardian.

Investment
Minimum:rs 5 per annum
Maximum:no limit
Senior Citizen qualify for special Interest rate.

Interest
Depends on the tenure of the deposit.
Starts from 7.25% to 9.75% per annum

Account Holding Type
Individual,Joint,HUF,companies,associations,trust,minor

Tenure
Offered up to 10 years

Tax Benefits 
No tax advantages for recurring deposit.

How to Join The Scheme/Account/Deposit/Policy?
Choose the bank
Choose nominee and witness signature.
choose correct tenure and amount.

Objective And Risk
The prime objective of the recurring deposit is to earn better interest on saving compared to what an ordinary saving bank offers and instill discipline to save regularly.

Tips
Check Interest rate with various bank.Choose bank which gives better flexibility.Even keep in consideration for inflation rate.Diversify your deposit with different tenure.

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