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How Does A Flexible Recurring Deposit Work?

Published

3 years ago

December 5, 2022

Not all of us can put bulk amounts into our investments, can we? But why is that? That is because the majority of us have a corporate job or a day job and get paid on a monthly basis – which means a little money every month.

For instance, if you want to invest Rs. 5,00,000 lakhs in a fixed deposit, your monthly salary is Rs. 50,000. How are you going to make it to fund the fixed deposit? Well, even if you save Rs. 10,000 each month, you would have to wait months in order to invest that in an FD. That is a long time to wait for your monthly to grow in any possible way.

But is there another way you could work this out? Fortunately, to your luck, there is. You can invest that Rs. 10,000 in a recurring deposit. Wait, wondering what a recurring deposit is.

Here we are – to explain it all.

What is the Meaning of a Recurring Deposit Account?

The recurring deposit account is a type of bank or post office account where a depositor makes regular monthly deposits of a predetermined amount of money (generally ranging from one year to five years). This format is intended for the persons who want to make a fixed monthly payment with the intention of receiving a lump sum after a few years.

The Recurring Deposit plan’s tiny monthly contributions allow the user to accumulate a sizable amount at maturity. This type of deposit scheme’s interest rate is calculable on a quarterly compounded basis.

An ordinary fixed deposit assures that a person allows money and can withdraw this amount within a specific time frame. You are unable to touch the amount of money or perhaps add to it in the interim. The repeating deposit follows a similar procedure. The primary difference in this type of program is that each month, instead of making a large deposit, you should deposit a specific amount into your account that you chose when you opened your RD account.

This sum can be negligible and won’t leave a big hole in your wallet. And when the loan matures, you will have a sizable surplus over the principal plus interest.

Want an RD Account? Here’s How to Have One

You can start a Recurring Deposit account by going to any bank or post office, filling up the necessary paperwork, and paying the first month’s payment together with other required documents, such as a PAN card and evidence of residency.

A recurring deposit can be opened for as little as six months or in increments of 3 months, with a maximum term of 10 years. The interest rates offered for recurring deposits are similar to those offered for fixed deposits. Similar to India Post, an additional 0.5% rate of interest is given to older citizens, and some banks additionally offer a grace period of roughly five days.

Although have you heard about the flexible recurring deposit? If you have not, this is the right place to get to know it.

What is a Flexible Recurring Deposit Account?

Depositors can invest lump sums as and when they become available with a Flexi Recurring Deposit, which gives simplicity and total flexibility. A Flexi RD has two parts: the flexible amount, which can vary with each monthly installment depending on the available money, and the core amount, which is the amount that the account holder contributes when the RD is opened. For a specific tenure, a core amount must be used to open each Flexi Recurring Deposit.

Depending on the bank where the RD is being held, this sum varies. With a cap on the amount to be invested, the variable portion of the recurring contribution can be increased in certain multiples.

While the flexible portion has an interest rate that is effective as of the deposit date, the core amount is subject to the relevant rates for the duration of the recurring deposit. The essential amount must be deposited by the deadline in order to avoid a fine from the bank.

No penalties will be assessed if the flexible amount is invested at any point throughout the month. Flexi Recurring Deposit plans do not incur early closure fees and can be closed at any time.

Some of the Famous Flexible RD Accounts

There are renowned banks out there that are willing to offer you this, and they are:

a) ICICI Bank ( iWish Flexi RD Plan)

One of the finest yields is provided by the ICICI Bank’s iWish Flexible Recurring Deposit, which has interest rates between 7.00% and 7.50% for terms ranging from 6 months to 10 years. Customers are not required to make deposits every month and may deposit any amount at any time during the term. Several deposits may be made in a single month. For iWish accounts canceled before the duration is up, ICICI Bank does not impose a pre-closure penalty.

When opening an iWish flexible RD account, customers can establish a goal amount and choose how much they should deposit each month to get there. To raise the necessary funds, family members and friends can make contributions.

b) Punjab National Bank (Swecha Jama Yojna)

The PnbSwechha Jama Yojna scheme requires a minimum deposit of Rs. 100 and can be applied for by a single applicant or as a joint account. Depositors have tenure options ranging from 6 months to 120 months. PNB stipulates that the monthly sum must not exceed ten times the core sum. Customers are not subject to any fees for late deposits or early termination of recurring deposits.

Under the supervision of a guardian, minors are also permitted to open a Flexi RD account through the PnbSwechha Jama Yojna. On a PnbSwechha Jama Yojna account that already exists, PNB also grants loans or overdrafts.

c) State Bank of India (Flexi Deposit Plan)

With the SBI Flexi Deposit program, a client has the freedom to select the annual deposit amount. This sum must be within the bank’s established minimum and maximum limitations. The deposit amount can be increased by multiples of Rs. 500 up to a maximum of Rs. 50,000. The minimum deposit amount is Rs. 5000. Customers are permitted to deposit any number of times during the year. A fee of Rs. Fifty will be assessed by SBI if there is any payment default. The deposit tenure might range from 5 years to up to 7 years, and the interest rate offered will be compounded on a quarterly basis.

Debits from savings accounts, current accounts, and other designated accounts can be used to pay for an SBI Flexi Deposit. The SBI Flexi Deposit scheme offers advantageous interest rates to senior folks as well.

Conclusion

This is literally – just the tip of the iceberg. But, you would like to know that there are a lot more banks that are willing to offer you this scheme – and you would have to enjoy it.

India News

Union Budget 2026 highlights: Nirmala Sitharaman Raises Capex to Rs 12.2 Lakh Cr, West Bengal Gets Major Allocation

Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026 in Parliament today. Follow this space for live updates, key announcements, and policy insights.

Published

6 days ago

February 1, 2026

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Finance Minister Nirmala Sitharaman arrives to present Union Budget 2026

Finance Minister Nirmala Sitharaman will shortly present the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget. The annual financial statement is expected to outline the government’s policy priorities, reform agenda and spending plans for the coming year. Stay tuned for live updates, key announcements and immediate reactions as the Budget speech unfolds.

Finance Minister Nirmala Sitharaman tabled her ninth Union Budget today, beginning her speech at 11 am.

Nirmala Sitharaman is set to present her ninth Union Budget today, with the finance minister scheduled to begin her speech at 11 am.

Budget 2026 live updates: Presenting the Union Budget for 2026–27, Finance Minister Nirmala Sitharaman said the occasion coincided with Magh Purnima and the birth anniversary of Guru Ravidas. She noted that over the past 12 years, India’s economic journey has been defined by stability, fiscal discipline, sustained growth and moderate inflation.

The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 per cent of gross domestic product (GDP)

Planned capital expenditure this fiscal year Rs 11.2 lakh crore

Rare earth corrdiors in Odisha and Kerala

Hi-tech tool rooms to be set up by PSUs

Construction equipment scheme to be launched

Container manufacturing scheme for Rs 10,000 crore over 5 years

Rs 10,000 crore SME Growth Fund

Semi-conductor mission to get Rs 40,000 crore

Rs 12.2 lakh crores for infrastructure development

Dedicated RITES to repurpose land of Central PSUs

20 new waterways over next 5 years to be connected

7 high-speed corridors on rail

High-level committee on banking for next phase of Viksit Bharat

Capital expenditure hike of to ₹12.2 lakh crore in Budget 2026, with West Bengal receiving a significant share of allocations.

Mahatma Gandhi Gram Swaraj Initiative aimed at boosting the khadi, handloom, and handicrafts sectors.

High-speed rail corridors: Mumbai-Pune, Pune-Bengaluru, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri, Pune-Hyderabad

Five university campuses to be established near industrial corridors

Lakpati Didi program expanded in Budget 2026 to reach more beneficiaries across India.

Fiscal deficit for FY26 revised to 4.4%; Budget Estimate for FY27 set at 4.3%.

TCS on overseas tour packages cut to 2% to ease travel costs

Tax holiday to foreign companies that provide cloud services by setting up data centres in India till 2047

17 cancer drugs exempted from import duties

India News

Union budget 2026 to be presented on Sunday with special trading session

The Union Budget 2026 will be presented on a Sunday for the first time in over two decades, with NSE and BSE announcing special trading sessions for the day.

Published

6 days ago

January 31, 2026

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For the first time in more than two decades, the Union Budget will be presented on a Sunday. Finance Minister Nirmala Sitharaman is scheduled to table the Union Budget for 2026 in the Lok Sabha on February 1 at 11 am, even as the day is usually observed as a holiday for government offices and financial markets.

February 1 falls on a Sunday this year, raising questions about market operations and investor response. To ensure uninterrupted trading and immediate market reaction to budget announcements, stock exchanges have announced special arrangements for the day.

Markets to remain open on budget day

Both the National Stock Exchange and the Bombay Stock Exchange have confirmed that markets will remain open on February 1. The NSE has announced a special trading session, with the pre-open market scheduled from 9 am to 9:08 am, followed by normal trading hours from 9:15 am to 3:30 pm.

The BSE has also declared the day a special trading day, with regular market hours applicable. Trading is expected to continue across equity, derivatives, and futures and options segments.

What the Sunday budget means for investors

A weekend budget presentation is seen as offering certain advantages for market participants. With trading active on the same day, investors will be able to respond to policy announcements immediately rather than waiting for the next working day.

The Sunday timing also gives investors, analysts, and financial institutions additional time to go through detailed proposals, including tax changes, fiscal deficit targets, and sector-wise allocations. The extended window for analysis may help reduce sharp, headline-driven reactions and encourage more informed decision-making.

With fewer competing developments on a non-working day, budget announcements are also expected to receive more focused attention from markets and stakeholders.

Parliamentary schedule and key milestones

The Economic Survey is expected to be tabled on January 29, ahead of the budget presentation. The Budget Session of Parliament began on January 28 with the President’s address to a joint sitting of the Lok Sabha and Rajya Sabha.

The upcoming budget will mark Nirmala Sitharaman’s ninth consecutive Union Budget. It will also be India’s 80th budget since Independence. Since 2017, Union Budgets have been presented at 11 am on February 1, following a timing change introduced during the tenure of former finance minister Arun Jaitley.

India News

Modi says right time to invest in Indian shipping sector; meets global CEOs

Published

3 months ago

October 29, 2025

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Prime Minister Narendra Modi on Wednesday exhorted global investors to take bets on the Indian shipping sector, pointing out that this is the “right time” for such a move.

The Prime Minister also met a select chief executives of global majors, including DP World and APM, at a specially convened meeting on the sidelines of the India Maritime Week 2025 held here.

“For all of you hailing from different countries, this is the right time to work in the Indian shipping sector and also expand (your presence),” Modi said during a public address before the closed-door meeting with CEOs.

Modi listed several targets being chased by India in the maritime sector over the next few years, and underlined the importance of the global community in the same.

“You all are an important partner who will help us achieve all our aims. We welcome your ideas, innovations and investments,” Modi said.

He said that India allows 100 per cent foreign direct investment in the shipping and ports sector, and also provides incentives under the “Make In India, and Make For The World” vision.

Addressing an audience, including leaders of various companies, the Prime Minister affirmed India’s commitment to strengthening the supply chain resilience at a global level.

He also said that India is engaged in creating world-class mega ports, and cited the work undertaken on the Vadhavan Port to the north of the financial capital, which entered the top-10 firms in the world on the first day.

The government is also looking to grow the capacity at 12 major ports by four times and increase India’s share in containerised cargo at the global level.

Later, Modi held a meeting with top CEOs of shipping sector companies from across the world.

As per people in the know, he met AP Moller-Maersk Chairman Robert Maersk Uggla, DP World Group Chairman Sultan Ahmed bin Sulayem, Mediterranean Shipping Company Chief Executive Soren Toft, Adani Ports and SEZ Managing Director Karan Adani and French company CMA-CGM’s Senior Vice President Ludovic Renou.

The participation from over 85 countries in the IMW sends a strong message, Modi said, noting the presence of CEOs of major shipping giants, startups, policymakers, and innovators at the event.

The Prime Minister also thanked Port of Singapore (PSA) for the nearly Rs 8,000 crore investment in the Jawaharlal Nehru Port Authority’s fourth terminal, pointing out that this is also the largest FDI in the port sector in India.

Modi said more than 150 new initiatives have been launched under the ‘Maritime India Vision’, resulting in nearly doubling the capacity of major ports, a substantial reduction in turnaround time, and a new momentum in cruise tourism.

—PTI