How to open RD online ?

Recurring deposit RD means you invest a fixed amount monthly for a long term ie one or more than one year. Every month contributes to yielding you a year-end interest. But the interest is in such a way that the first-month deposit yields you 12 months interest at the end of the maturity period when calculated for one year, the second-month yields you 11 months interest, third-month yields you 10 months interest as the interest are calculated excluding the undeposited months of the RD. The interest yield in RD is less than FD but it's a good plan for those who don't have a lump sum amount in hand but have a monthly income and can make up a particular sum every month for saving. In case of emergency if you want to withdraw the money in RD before the end of your term deposit you can withdraw filling a form but paying penalty. All these can nowadays be done through internet banking or mobile banking. Let me brief how to open the RD account.

  Hope you have a bank account with a net banking facility. If not you may refer to  how to start a bank account blogpost and how to register for an online banking blog.  Every bank is unique and they have their own display page, interest rate, minimum and maximum deposit amount, tenure but the process is the same in all banks.

OPEN A RD

Either open your bank account via the so and so bank app through your mobile or go to a certain bank's website via the internet and log in to your bank account. Now via the e-deposits option, you may open Rd by opening the concerned form and filling the application. Fill the tenure based on your decision. Refer and be aware of the interest rates of different banks for different tenure. Be sure to mention whether you are a senior citizen as senior citizens have more perks( i.e. comparatively higher interest rates) in interest rates. But RD won't suit senior citizens has many won't have monthly income at that age. FD would be the best option for senior citizens. You may refer my blog on how to start FD if you have any doubts. The maturity instructions may be selected either as payback principal and interest or as Convert to stdr. 

Payback Principal and Interest 

Once payback principal and interest is the maturity instruction you select then the amount you deposit every month along with its yearly interest is gonna be credited to your main savings account.

Convert stdr short term deposit receipt

Preferring this would make you save your RD interest plus deposit amount ie the maturity lump sum separately as a fixed deposit based on the tenure you prefer.

There is no renew options for RD. Again you have to start a new RD if you want. An OTP may be generated and sent to your relevant phone number. Please be conscious enough to not share your OTP to anyone. Also agree to the terms and conditions and submit the form. Once the respective RD tenure gets over the RD amount is automatically returned to your main account or saved further based on the process you opt. You may start n number of RD's as per your wish. All your savings are available under a single login with different account numbers but under a single parent account number and account book.