You have also got RD done in the bank, so take care of these things, otherwise you will have to pay penalty

Bank Recurring Deposit Penalty Rules: Recurring Deposit (RD) is a safer and better option for small savings if you want to deposit your money in the bank for a short period of time. You can open Recurring Deposit in the nearest branch of any bank or post office. In this, you have to deposit a fixed amount every month on a fixed date. If an RD account holder does not deposit the money by the stipulated day, then he may have to pay a penalty.

Make sure to deposit money by the due date
While opening a Recurring Deposit (RD) account, you have to deposit a fixed amount and certain interest rates every month. This debt is decided with the consent of the bank and the Custer, how much amount will be deposited for how many years. If you talk about the country’s largest bank SBI, then you can open a Recurring Deposit Account for at least 1 year and maximum 10 years. Here you can deposit money in multiples of minimum 100 rupees and maximum 100 rupees every month. No limit of Maximum is fixed here.

When penalty has to be paid
If you do not deposit the money by the due date, then you may have to pay a penalty in such a situation. By the way, the rule of paymalty is different for every bank. If you talk about SBI (State Bank of India), then if you have got an RD for a tenure of 5 years or less, then for an RD of Rs 100, you will have to pay a penalty of Rs 1.50. On the other hand, for RD of more than five years, you will have to pay a penalty of Rs.

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At the same time, in case of non-payment of installment for 6 times, the account will be closed and the money will be given to the account holder. If you have not deposited the money by the due date, then you can use the auto debit facility of the bank. With this, the money will be transferred automatically on the due date every month. Just keep in mind that there is enough balance in the account.

You can take loan against RD
You can also take a loan from the bank on the basis of Recurring Deposit (RD) account. At the same time, you can also take advantage of the draft facility. At the same time, you can also take advantage of tax exemption by submitting Form 15G/15H there.

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