Payout at Maturity

• In recurring deposit (RD) accounts, interest is typically paid only at maturity.
• The maturity amount includes the total of monthly deposits plus compounded interest.
• This lump sum payout provides a predictable and complete return.
• There are no monthly or quarterly interest disbursements.
• It suits savers focused on long-term goals.

Quarterly Compounding Basis

• Interest is compounded quarterly, even though it’s paid at the end.
• This means interest is calculated every three months and added to the balance.
• Compounding increases the effective yield over time.
• Longer tenures result in higher accumulated interest.
• The process is automated and standard across most banks.

No Interim Withdrawals of Interest

• Banks do not allow partial or periodic interest withdrawals from RD accounts.
• All interest earned remains invested until the maturity date.
• This helps maximize returns through uninterrupted compounding.
• Customers must wait until the full term completes.
• Premature closure leads to adjusted interest and penalties.

Fixed Tenure and Amount

• The interest payout frequency does not change during the RD tenure.
• Monthly deposit and tenure are fixed at the time of account opening.
• These fixed conditions help in planning savings effectively.
• There is no option for interest payouts before term ends.
• Maturity terms and interest rates are communicated at the start.

Digital and Account Statement Access

• Customers can track accrued interest digitally through net banking.
• Banks update RD statements periodically to reflect interest earned.
• Maturity amount and final interest are shown clearly on closure.
• SMS and email alerts are often provided close to maturity.
• Receipts or passbooks summarize the entire interest payout timeline.