Union Bank of India recently announced "Union Monthly Plus" - a Recurring Deposit that allows you the flexibility to deposit varying amounts every month depending on your convenience. This is unlike the normal Recurring Deposits that you have, where you have to invest a fixed amount every month for the entire tenure. I had mentioned in my book how banks were working hard to make Fixed Deposits and Recurring Deposits attractive. This is another step towards that trend.
There are some conditions though:
1. The amount cannot be lesser than the "core" amount you decide. For example, if it's Rs. 500 - then you cannot deposit lesser than that every month.
2. You can only invest up to 10 times your core amount.
3. Minimum and maximum tenure is 6 months and 5 years respectively.
4. Interest rates for below 1000 days is 5.5%. Above that is 8%. Senior citizens get a 0.5% additional interest.
There could be more, but that's all I could gather from their help desk at 1800222244. If you have an account in Union Bank of India, you could check it out.
A quick search reveals that Bank of Baroda too has a similar scheme - although their website mentions the maximum tenure as 3 years.
Quick Reference: Union Bank of India website.
2 comments:
Flexible recurring deposit is a handy investment tool. Deposit as much you want as your earnings fluctuate. Even Punjab national bank has such a scheme.
Parshuram
I guess recurring fixed deposits attract TDS, unlike regular recurring deposits, on which there is no TDS, and the interest earned is tax free.
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