A modern day recurring deposit is quite similar to depositing a regular sum of money in piggy bank that we have been saving in, since our childhood. Unlike fixed deposits, a recurring deposit can be done with even a small sum of money and can be invested on a monthly basis, instead of making a single and lump sum deposit. One of the most common banks to offer the service is Citibank. Citibank recurring deposit is one of the most basic and favoured saving plans that you will come across.
At the end of the maturity period of the recurring deposit, a person can withdraw the whole amount in lump sum, and meet the purpose for which he made the recurring deposit. It offers many benefits for an individual who seeks to make an investment and save his money.
Citibank Recurring Deposit Interest Rate 2020
Below mentioned are the Citibank recurring deposit interest rates*:
|Tenure||Recurring Deposit Interest Rate|
|365 – 400 Days||6.25%|
|401 – 540 Days||7.00%|
|541 – 731 Days||6.00%|
*The rate of interest mentioned in the table is for deposits below ₹ 1 Crore with effect from August 6th 2018.
Why you should open a Citibank Recurring Deposit account?
People opt for a recurring deposit account rather than fixed deposits as it allows you to engage in a habit of saving money every month or at every interval for which the investment has been made, where you are required to deposit a sum of money for a fixed tenure. The minimum tenure for which the investment has to be made is 12 months, which helps you in gathering a good sum of money at the end of tenure.
In the long run, this habit turns out to be very useful for you and your family in financial terms. You do not require to invest a huge sum of money in one go with a recurring deposit.
Benefits of Citibank Recurring Deposit
A customer can get the following benefits by starting a Citibank Recurring Deposit:
- An individual can start his recurring deposit account for an amount as low as ₹ 1000.
- With easy option to withdraw the amount at any time, a customer can take the money out of the account as and when he needs to meet a financial goal.
- Through attractive rates of interest, an individual is aptly rewarded for making an investment.
- Monthly standing instructions to the bank can be given so that the customer need not deposit the sum of money on his own every month, instead the amount shall be automatically debited in the account.
Every recurring deposit account has to adhere to the Know Your Customer (KYC) guidelines. Therefore, one needs to submit his proof of identity and proof of residence, in order to open a Citibank recurring deposit. On successful completion of the requisite details, one can begin investing in the recurring deposit scheme of the bank at any time. One should contact your nearest branch for more details about Citibank recurring deposits.