Open An RD Account Online In India: Step-by-Step Guide For Hassle-Free Savings

Image Source : The Economic Times

Opening a Recurring Deposit (RD) account online in India is a simple and secure way to build disciplined savings. Most banks offer this facility through their net banking portals or mobile apps, allowing users to start with as little as ₹100 per month.

Steps To Open An RD Account Online

1. Choose your bank and ensure you have an active savings account with net banking or mobile banking access
2. Log in to the bank’s app or website using your credentials and OTP verification
3. Navigate to the Deposits or Investment Services section and select Recurring Deposit
4. Enter the monthly deposit amount, tenure (typically 6 to 120 months), and interest payout frequency
5. Link your savings account and set up auto-debit instructions for monthly contributions
6. Review the terms, confirm nominee details, and submit the form
7. Receive confirmation and RD receipt via email or SMS

Additional Tips

- Compare interest rates across banks; current rates range from 6 percent to 8 percent per annum
- Use RD calculators to estimate maturity value and tax implications
- Submit Form 15G or 15H to avoid TDS if eligible
- Most banks allow premature withdrawal with a small penalty

Outlook

Online RD accounts offer convenience, flexibility, and guaranteed returns, making them ideal for short- to medium-term financial goals like vacations, gadgets, or emergency funds.

Sources: Economic Times, Money View, BankBazaar, AU Small Finance Bank, IndusInd Bank