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.

Tata Sons and Singapore Airlines (SIA) have agreed to merge Air India and Vistara airlines by March 2024. The latest notification states that SIA is also investing Rs 20,585 million in Air India as part of the transaction, giving SIA a 25.1 percent stake in the Air India group.

Currently, Tata Group holds 51 percent of the shares in Vistara, and Singapore Airlines has the remaining 49 percent. According to the release, SIA and Tata have also agreed to take part in future capital investments that may be necessary to finance the expansion and operations of the larger Air India in the fiscal years 2022–2023 and 2023–2024.

Vistara airlines and Air India to merge, says Singapore Airlines after its board approves merger

— Press Trust of India (@PTI_News) November 29, 2022

Tata Sons chairman N Chandrasekaran said that the merger of Vistara and Air India is an important milestone in their journey to make Air India a truly world-class airline. He said they are transforming Air India, with the aim of providing a great customer experience, every time, for every customer.

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He further said that as part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition, and enhancing safety, reliability, and on-time performance. He stated that both Tata Sons and Singapore Airlines are excited about the opportunity of creating a strong Air India which would offer both full-service and low-cost services across domestic and international routes. He also thanked Singapore Airlines for their continued partnership.

SAI chief executive officer Goh Choon Phong said the merger provides an opportunity to deepen the company’s relationship with Tata and participate directly in an exciting new growth phase in India’s aviation market.

SAI chief executive officer Goh Choon Phong said Tata Sons is one of the most established and respected names in India. SIA’s collaboration to set up Vistara in 2013 resulted in a market-leading full-service carrier, which has won many global accolades in a short time. He said with this merger, SIA has an opportunity to deepen its relationship with Tata and participate directly in an exciting new growth phase in India’s aviation market. He further said that they will work together to support Air India’s transformation programme, unlock its significant potential, and restore it to its position as a leading airline on the global stage.

Nykaa chief financial officer Arvind Agarwal resigned from his position on Tuesday. The fashion and beauty e-commerce platform announced his resignation.

In a BSE filing, Nykaa informed that Agarwal will be leaving the Company, effective close of business hours on November 25, 2022, to pursue other opportunities in the digital economy and start-up space.

Nykaa’s founder Falguni Nayar hailed Agarwal for the crucial role he played in the company’s emergence as a listed and profitable start-up. Nayar said the company is conscious of Agarwal’s personal dreams and wishes him all the luck.

Upon his resignation, Agarwal said his journey in Nykaa has been incredible so far and all his learning and experiences have set them up for pursuing different personal growth opportunities in the field. He further wished Nykaa good luck for the growth path ahead.

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Arvind Agarwal earlier worked with Amazon and joined Nykaa in July 2020. He was among the key managerial personnel and handled the initial public offer of the firm. Before Amazon, Agarwal worked with Vodafone India for more than 5 years. He had also worked with YOU Telecom, Adani Port, and Tata Teleservices.

Reports said Agarwal paid a total remuneration of Rs 19.58 million during the financial year 2021.

Apart from Nykaa, food delivery application Zomato also saw the resignation of its co-founder Mohit Gupta after 5 years of association with the company.

Gupta, in a message, stated that he decided to move on from Zomato to seek other unknown adventures. He also hailed Deepinder Goyal as he has become a more mature and confident leader who is capable of leading the business into a bright future.

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