INTEREST RATE : 10% per annum
Deposit offered by our company in India which help people with regular incomes to deposit a fixed amount every month into their recurring deposit account. Recurring Deposit is a special kind of Term Deposit offered by our company in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account . Tax Deducted at Source ( TDS ) is applicable on RDs. If interest earned on recurring deposits exceeds Rs. 10,000 a year, TDS at the rate of 10 percent would be deducted by the bank. Income tax is to be paid on interest earned from a Recurring Deposit at the rate of tax slab of the RD holder.
In banking terminology, the term recurring deposit refers to the periodic placement of a fixed sum of funds with a bank or financial institution into a special term account, with a specified tenure, generally between one and five years. At the end of the tenure, the funds are typically withdrawn by the depositor with accrued interest.