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If you want to break your RD early, know these important rules

Sagar Patel

By Sagar Patel

Published on:

investment (indicative)

When it comes to investments, many times the first thing that comes to mind is the bank FD, in which a lump sum of money is deposited for a fixed time limit. But there are many people who look for the monthly investment option. For these people, recurring deposit is considered the safest investment. There is little to no risk in this. Whatever money you deposit, it will remain safe and earn good returns over time.

What is the specialty?

Investing in RD is so easy that anyone can open an account, deposit money and withdraw money upon maturity. The RD is a means of savings in which, in addition to saving money, there is the opportunity to obtain excellent profits. As the RD period passes, money is added to the account. In the end you get a lump sum that you can’t even imagine. There is the possibility of taking loans against the DR. You can deposit and withdraw RD money online. Despite all these features, there are some conditions that must be considered.

Keep this in mind

Whenever you open an RD account, keep in mind that you should decide the installment deposit date only after careful thought. Choose the duration of the DR wisely. Both conditions are such that there is no scope for further changes. Once an RD account is opened, its tenure and installment deposit date cannot be changed later. If it is very important to change the payment date or period, then you will have to close the RD account. You will have to close your RD account in advance and open a new account. You will have to pay a penalty for premature account closure.

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You won’t have a chance later

Therefore, before opening an RD account, decide its duration and date of installment deposit. Decide what date to deposit the money each month so there is no need to make changes. Also decide for how many years you want to run RD and there will be no financial problems during those years. Afterwards you will not have the opportunity to change the RD period. You will have to close the account and open a new RD account.

If you do not deposit money in your RD account on time or leave it pending for a few months, the bank may close that account. The next time you go to restart you will have to pay the fine. In case of premature closure of the account, the interest will be the same as according to the interest rate rule in case of premature closure of RD. Banks already give this information to their clients.

Now you can invest sitting at home

If your RD account is not closed or you have extra money, you can deposit RD installments more than once. However, keep in mind that you will not earn additional interest for depositing additional money or more installments. Interest will be given on the same amount that will be your installment. There are no problems in depositing installments because now most banks offer the possibility of online banking and mobile banking. You can deposit the installment from anywhere or withdraw the maturity amount from anywhere. By visiting the bank’s application you can set the date and term for payment of the fee. For this purpose, an automatic debit service is also provided. If you forget to deposit the fee in any month, the automatic debit will remind you and the money will also be deposited automatically.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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