Recurring Deposit (RD) Premature Withdrawal
Recurring deposit is a type of account wherein you authorize banks to deduct fixed amount of money from your savings account every month (you can also deposit online) and tenure varies for each bank. For e.g. In SBI the minimum tenure is 1 year whereas for ICICI it is only 6 months. And maximum tenure is 10 years for both the banks. Minimum deposit amount varies between public and private banks which has higher monthly deposits.
Interest Rate on Early Withdrawal/Closure
In RD premature withdrawal is possible however the interest rate offered would be less as compared to the normal base rate which is 8.40% per annum. However some banks would deduct interest rate by 1%-2% for which the deposit remained in the bank.
Minimum lock-in period for RD account is 1 month and account holder's request for premature withdrawal before this lock-in period would earn zero interest and in such cases, only the principal amount deposited would be refunded to the account holder by the banks. In addition to the penal interest, any incentives offered are also denied.
Default/Late Payment Charges
If an investor misses to pay monthly instalments for 3 consecutive months or more (varies for each bank) then your account would be permanently closed/discontinued until the account holder pays the outstanding payment due. However banks might penalize by applying service charge which is very small Rs. 10. If person does not want account revival and wants money back then the account holding bank will apply premature withdrawal rules and accordingly interest would be applied.
Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
---------------------------------------------
Leave your comment with mail ID and we will answer them
OR
You can write to us at
PrajnaCapital [at] Gmail [dot] Com
OR
Leave a missed Call on 94 8300 8300
0 comments:
Post a Comment