Saptagiri Grameena Bank Variable Recurring Deposit

Variable Recurring Deposit is a type of Recurring Deposit Scheme offerd by Saptagiri Grameena Bank. It is a low-risk investment option available to those investors who want to make a regular investment for a specified period of time. Saptagiri Grameena Bank Variable Recurring Deposit is an RD in which the customer has the liberty to deposit the monthly installments as per his choice.

Variable Recurring Deposit helps channealizing monthly savings in the scheme usually for long term corpus building. In an RD, the customer has the flexibility to choose an amount to be deposited every month and the tenure of such deposit. Under Variable Recurring Deposit, the customer is given an option to vary his monthly installments according to his convenience in multiples of Rs.25.

Saptagiri Grameena Bank Variable Recurring Deposit is good option for saving amount to accomplish some specific goal.

Features of Variable Recurring Deposit

• Choose the installment amount as per your choice.
• Deposit installment multiple times in a month
• Interest is accumulated
• Different tenures are available for investment.
• Can open multiple Variable Recurring Deposit accounts.
• You can open as many Variable Recurring Deposit accounts as you like.
• Nomination facility is available.

Benefits of Variable Recurring Deposit

• Higher Interest Rate is offered Variable Recurring Deposit as compared to savings account. Moreover, senior citizens are offered 0.50% extra rate of interest.
• Interest rate is locked for the entire period of investment at the time of booking the Variable Recurring Deposit.
• Interest will be calculated with quarterly compounding rests.
• The interest under Variable Recurring Deposit is accumulated and paid at the time of maturity along with the principal.
• Facility to withdraw money from the account prematurely.

Target Customers

• Who do not have a lump sum amount to invest
• Who can invest small sums of money regularly
• Customers who want to receive a lump sum amount on maturity of the scheme
• People who are risk averse
• Customers willing flexibility in installment amount
• Who want to make deposits in RD as many times as possible

Eligibility

New and Existing account holders with Saptagiri Grameena Bank are eligible to open Variable Recurring Deposit.

How to Open Variable Recurring Deposit Account?

• Step 1: Visit any of the branch of the Chaitanya Godavari Grameena Bank.
• Step 2: Obtain and fill out the Variable Recurring Deposit 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, standing order, fund transfer or in cash.
• Step 5: The banker will check your application and process the same.
• Step 6: Your Variable Recurring Deposit Account will be created.

Documents Required to Open Variable Recurring Deposit Account

1. A duly filled up application form
2. Passport size photograph of the applicant
3. ID and Address proofs
4. Officially valid KYC documents
5. Any other documents required by the bank

How Variable Recurring Deposit Works?

Outline below is the complete process as to how Variable Recurring Deposit works,

• After opening your Variable Recurring Deposit account, you will deposit monthly installment (any amount can be chosen in multiples of Rs.25, and any number of times it can be deposited in the account) during the period of deposit chosen by you
• You have to deposit the fixed amount every month during your RD tenure, which can be anywhere between 12 months and 3 years
• The interest will be calculated on quarterly compounding rests and is added to your account. Interest will be calculated on the minimum balance available in the account between 10th and last day of the month
• On the maturity of your account, you will receive the deposit amount along with the interest income earned over the entire tenure

Rate of Interest of Variable Recurring Deposit

• Senior citizens are offered 0.50% extra rate of interest.
• The interest will be calculated on quarterly compounding rests and is added to your account. Interest will be calculated on the minimum balance available in the account between 10th and last day of the month.
• TDS at prevalent rate is deducted at source, if FORM 15G/ 15H not submitted.

Minimum and Maximum Investment under Variable Recurring Deposit

The customer has the facility to deposit installment amount minimum of Rs.25 and there is no maximum limit.

Standing orders facility is available for customers to deposit hassle free monthly installments.

Loan Facility under Variable Recurring Deposit

An account holder can apply for loan any time during the period of the deposit. However, loan facility will be available as per extant guidelines.

Tenure of Deposit under Variable Recurring Deposit

Premature Closure of Variable Recurring Deposit 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.

Variable Recurring Deposit allows you for premature closure any time during its tenure. You are permitted to close your account prematurely without any difficulty. Foreclosure facilities will be available as per extant guidelines.