OBC Recurring Deposit

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OBC Recurring Deposit

  • The OBC’s recurring deposit rates are forecast to hit 5.50 per cent.
  • An OBC Recurring Deposit’s interest is compounded quarterly.
  • An OBC Recurring Deposit requires a minimum deposit of Rs 1,000.
  • The OBC provides an RD discount of up to 6% to senior citizens.

OBC Recurring Deposit Rates – Special Features

  • In reality, there are currently no plans in place to deal with late refunds.
  • It is important to appoint anyone.
  • The deposit would last anywhere from six to one hundred and twenty months.
  • In Rs. 5 multiples, the smallest amount of data can be saved.
  • TDS deductions are governed by the applicable income tax laws at the time the RD account is opened.

OBC Recurring Deposit Schemes Types

There are three forms of revolving deposits offered by the OBC:

RD on a Regular Term basis

Your OBC Recurring Deposit will last between six and three years. This RD is for those who want to make saving a habit in their daily lives.

RD on a Medium-Term Basis

If you can’t pay for a long time and aren’t sure how much return you’ll get from RD, a medium-term periodic deposit is a reasonable option. It strikes the perfect balance of adaptability and financial responsibility, allowing you to weigh the advantages and disadvantages. The average length of service is three to seven years.

RD on a Long Term basis

When you want to earn a return on your savings but don’t have the funds to invest in a fixed deposit, a long-term RD is the best choice. Every year, you’ll save money while still benefiting from your fixed-item savings.

OBC Recurring Deposit Account

Customers of the OBC may deposit money into a revolving account every month for a fixed period of time. A consumer must deposit into their RD account at the time of account opening. During the deposit cycle, the client makes periodic deposits and withdraws the entire account balance.

RD regularly

  • In fact, there are no plans in place to handle late refunds at this time.
  • It is important to nominate anyone.
  • The minimum tenure for this RD is six months.
  • A deposit of Rs. 1,000 is the minimum sum that can be made into this account.
  • The smallest amount of data can be saved in Rs. 5 multiples.

OBC Recurring Deposit Rates

OBC Recurring Deposit

Interest rates at the OBC Revolving deposits are calculated using several variables. Any of them are as follows:

  • Interest rates on all banking instruments, including revolving deposits, are affected by changes in the Cash Reserve Ratio (CRR) and the RBI’s repo rate.
  • During a slowdown, the Reserve Bank of India (RBI) releases funds to inject money into the economy. Banks are lowering RD prices due to high liquidity and low credit demand.
  • Inflation – Inflation has a positive effect on the interest rate on a fixed deposit. As a result, during periods of rising inflation, RD prices appear to be higher.

OBC Recurring Deposit Interest Rates 2021

Tenure General Rates Senior Citizen Rates
6 months 3.50% 4.00%
9 months 4.40% 4.90%
12 months 4.90% 5.40%
15 months 4.90% 5.40%
24 months 4.90% 5.40%
27 months 5.15% 5.65%
36 months 5.15% 5.65%
39 months 5.30% 5.80%
48 months 5.30% 5.80%
60 months 5.30% 5.80%
90 months 5.50% 6.00%

OBC Recurring Deposit Interest Calculator

The complexity of your RD is influenced by three factors:

  • The original amount deposited by a customer in the OBC is the account balance. Larger deposits could be eligible for a higher interest rate. Deposits of up to Rs 1,000 will be accepted by the Bank of India.
  • Longer-term revolving deposits will gain a higher interest rate, while shorter-term deposits will earn a lower rate, according to the OBC. The OBC offers the highest interest rate on deposits, at 5.50 per cent.
  • The bank pays a low-interest rate on short-term RDs and a higher rate on long-term RDs, depending on the deposit period.

OBC Recurring Deposit Opening Process 

Go through these simple steps if you have no clue how to open an OBC recurring deposit account:

  • You can open an RD Account at your local branch or by calling the bank’s customer service number if you already have a bank account. A Recurring Deposit account with the Bank of India is simple to open and can be used at both public and private banks.
  • Call the branch nearest you to open an OBC Revolving Deposit account with a bank with which you do not already have an account. To open an account, you’ll also need some basic KYC paperwork. Banks have different interest rates, time limits, minimum deposits, credit limits, and other terms and conditions. Examine all of this data to see which bank will be the best for you to open an account with.
  • Before opening an OBC Recurring Deposit Account, the tenure and monthly due balance (deposit amount) must be determined. Regular depositors may use the ECS, online banking, or a fund transfer to make deposits. You can also tell the bank to subtract a certain amount from your deposit per month if you have a Revolving Savings Account.

Duration of OBC Recurring Deposit

The period of daily deposits with the OBC ranges from 6 to 120 months.

Before the maturity date, revolving deposits with the OBC may be withdrawn.

Withdrawals from an OBC Recurring Deposit are extremely common. According to the OBC’S banking rules, a nominal penalty would be levied. Partially withdrawing funds from an RD account is not feasible.

The OBC has been charged with failing to pay an RD instalment on time.

If you pay after the due date, the bank will grant you a grace period of a few days. The OBC will owe you a penalty if you do not pay the instalment by the due date.

Mr A, for example, opens a one-year RD account at a rate of 5.50 per cent with $5,000 in monthly deposits. In this case, the net maturity value at the end of the year will be 61,809, which comprises both the collected principal and the gross interest on the 1,809 principal amounts. You can also use the RD calculator to find out how much debt you’ll have and how much money you’ll have at the end of a long time.

FAQs for OBC Recurring Deposit

What are the requirements for opening a Recurring Deposit Account with the OBC?

RD accounts will be accessible to Indian people and HUFs (Hindu Undivided Families). NRIs will use their NRO and NRE accounts to open RD accounts. Children whose parents keep track of their finances may also use the RD service provided by banks.

How long does an OBC Revolving Deposit last?

OBC Recurring Deposits are valid for a minimum of 6 months and a maximum of 120 months.

Is it possible to withdraw funds from an RD account until it matures?

You can split your RD until it matures if you have an emergency, but your account will be locked after that. As a punishment, banks will subtract 1% to 2% of the interest received on your OBC Recurring Deposit when it was in their hands.
If a depositor requests an early withdrawal before the lock-in period ends, he will only be refunded the principal balance and will not be required to pay interest. All previously issued rights have been revoked, except for the interest cancellation.

Is it possible to make partial withdrawals from OBC recurring deposit accounts?

OBC does not allow partial withdrawals from recurring deposits. On the other hand, some banks would let you use your RD as leverage for a loan or an overdraft. On the other hand, premature withdrawals are approved if you have had an RD account with them for at least a year. Unpaid debt is referred to as a debt that cannot be paid in full.
Premature Closing is an option worth considering, but it comes at a cost.

When an OBC Recurring Deposit account hits its maturity date, what happens?

Before the principal and accrued interest elements of your OBC Recurring Deposit account mature, you recommend that the bank move the principal and deferred interest elements to the corresponding savings account. After the RD matures, you’ll transfer the funds to pledged deposits.

Is there a nominating option on the OBC Recurring Deposit account?

The OBC can help you set up daily deposits. Only one applicant is eligible, regardless of whether the account is opened in single or joint names. It would help if you made certain that the appointment is set up following OBC rules. You may make changes to the applicant by filling out and submitting the appropriate form.

For further information, please visit the official page of Dialabank.