CGGB Recurring Plus: A Tool for Weath Creation
By Team CodeForBanks | March 26, 2024
Recurring Deposit (RD) is a popular and low-risk investment tool available in India which helps streaming monthly savings in the scheme usually for long term corpus building. In an RD, the customer has the flexibility to choose a minimum amount to be deposited every month and the tenure of such deposit. RD offers moderate and assured returns which are locked in at the time of its booking. One can also calculate the interest earned and the maturity value of RD with the use of Recurring Deposit Calculator.
CGGB Recurring Plus
CGGB Recurring Plus is a variant of bank's Recurring Deposit Scheme offerd by Chaitanya Godavari Grameena Bank which facilitates the customers to deposit money multiple times in a month in their account. CGGB Recurring Plus helps the depositors to accumulate their savings over a period of time for weath creation as well as to meet future contingencies.
If your risk tolerance level is low and you seek fixed returns from your investments, you can invest in CGGB Recurring Plus. This tool offers you the facility for investing small sums periodically or multiple times in a month in a planned manner. CGGB Recurring Plus is especially suitable for saving for some specific expenditures like purchase a vehicle, save for higher education, buying an asset or saving for a vacation.
Suitable for Whom?
- Who do not have a lump sum amount to meet their goals
- Customers who want to receive a lump sum amount on maturity of the scheme
- Investors with a low-risk appetite
- Customers who want flexibility in depositing installment i.e. who wish to deposit installments more than once in a month
- Who want to locked-in the interest rate at the time of booking the deposit
Features of CGGB Recurring Plus
- Flexibility to choose the installment amount.
- Facility to deposit installment multiple times in a month
- Various maturity CGGB Recurring Plus are available for investment.
- Customer is allowed to choose the period of investment as per his objective.
- You can open as many CGGB Recurring Plus accounts as you like.
- Nomination facility is there.
- It allows you to create a corpus from scratch.
Benefits of CGGB Recurring Plus
| Benefit | Descrption |
|---|---|
| Higher Interest Rate | CGGB Recurring Plus offers higher interest rates than savings account whereby customers can earn higher returns on their investment. |
| Fixed Interest for Entire RD Tenure | Interest rate will be locked for the whole tenure at the time of booking the CGGB Recurring Plus. |
| Benefits to Senior citizens | Senior citizens are offered 0.50% extra rate of interest. |
| Compounding Effect | Interest will be calculated on daily product basis with quarterly compounding rests. |
| Maturity Value | The interest under CGGB Recurring Plus is compounded and paid at the time of maturity along with the principal. |
| Premature Withdrawal | Customers can withdraw their money prematurely at any time without any penalty. |
| Loan/Overdraft Facility | Loan/Overdraft facility can be availed by the customers. |
How CGGB Recurring Plus Works?
Outline below is the complete process as to how CGGB Recurring Plus works,
- After opening your CGGB Recurring Plus account, you will deposit monthly installment during the period of deposit chosen by you
- You need to deposit the fixed amount every month during your RD tenure, which can be anywhere between 6 months and 60 months
- CGGB Recurring Plus also facilitates you to deposit multiple times in a month in your account
- The interest will be calculated on daily product basis with quarterly compounding rests and is added to your account
- On the maturity of your account, you will be given the deposit amount along with the interest income earned over the entire tenure
Rate of Interest of CGGB Recurring Plus
| Period | Less than Rs 1 Cr | Rs 1 Cr & Above |
|---|---|---|
| 15 days to 45 days | 4.25% | 3.75% |
| 46 days to 90 days | 6.00% | 5.75% |
| 91 days to 179 days | 6.50% | 6.25% |
| 180 days to 364 days | 7.25% | 7.00% |
| 1 year to less than 2 years | 8.10% | 7.85% |
| 2 years and above | 7.25% | 7.00% |
- Senior citizens are offered 0.50% extra rate of interest.
- Interest will be calculated on daily product basis with quarterly compounding rests.
Documents Required to Open CGGB Recurring Plus Account
- A duly filled up application form
- Passport size photograph of the applicant
- ID and Address proofs
- Officially valid KYC documents
- Any other documents required by the bank
Minimum and Maximum Investment under CGGB Recurring Plus
The customer has the facility to choose any installment amount between Rs.100 and Rs.1,00,000.
| Minimum Investment | Rs.100 |
| Maximum Investment | Rs.1 lakh |
Loan/Overdraft Facility under CGGB Recurring Plus
An account holder can apply for loan or overdraft any time during the period of the deposit. The loan/overdraft will be up to 90% on the balance amount available in the account.
Further, if the account holder is prompt in depositing monthly installments, the amount of interest already provided under 'Interest Payable Time' can also be considered for calculating the eligible amount of the loan.
Tenure of Deposit under CGGB Recurring Plus
| Minimum period | 6 Months |
| Maximum period | 60 Months |
Premature Closure of CGGB Recurring Plus Account
RD premature closure means you wish to withdraw your money from your RD account before its maturity date. It is generally recommended not to withdraw from your RD account before its maturity, however, dure to some urgent or unforeseen financial emergencies, you may be required to close your RD before its maturity.
CGGB Recurring Plus allows you for premature closure any time during its tenure. You are also permitted to close your account prematurely without any penalty.
You are advised to carefully assess your situation first and also consider other optins like taking loan against your CGGB Recurring Plus (which is available), in stead of closing your RD account prematurely.
How to Maximise CGGB Recurring Plus Returns?
For maximising CGGB Recurring Plus returns, you would do the following,
- Try to select a longer tenure of CGGB Recurring Plus RD to get more benefit from the power of compounding
- Invest a larger installment and as many times in a monthly as possible so that it can earn more interest
- Do not withdraw your CGGB Recurring Plus Deposit before its maturity to gain more out of it
- Book CGGB Recurring Plus Deposit for your parents/ grandparents, who are senior citizen as they will get 0.50% extra interest rate on their deposits in the scheme
How to Open CGGB Recurring Plus Account?
- Step 1: Visit any of the branch of the Chaitanya Godavari Grameena Bank.
- Step 2: Obtain and fill out the CGGB Recurring Plus application form mentioning all the personal details like name, address, mobile number, installment amount, mode of payment, tenure, nominee and other pertinent information.
- Step 3: Attached all the required documents with the application form.
- Step 4: Make the deposit of the first installment with a cheque, fund transfer or in cash.
- Step 5: The banker will check your application and process the same.
- Step 6: Your CGGB Recurring Plus Account will be created.