If you are not a very high-risk taker, you might be a bit afraid while investing in Share Markets or Mutual Funds. In such a case, there are some other types of investment like Fixed Deposits, Recurring Deposits and some Post Office schemes which have proved to be a much safer call although they don’t give high returns as compared to stocks and mutual funds.
Recurring Deposits are an ideal way to invest small amounts of money every month and end up with a large kitty on maturity. Read this article about compounding returns which guides you through how it may work wonders with your small investments over a long period of time.
We read it everywhere, on every single personal finance related blog, everybody tells us this – start investing in the early days of earning. But at times, we simply don’t make the move because the hassle of going to the bank and start any investment, be it FD or RD or any other form of investments for that matter. This post will make your life a lot easier!
In this post, I am going to show you how to setup a Recurring Deposit using your Online ICICI Netbanking account from the comfort of your home and don’t have to go to your Bank branch. I myself am a bit lazy in these things and I started an RD deposit from my iPhone and it took me not more than 3 minutes.
So, lets get started and set up a Recurring Deposit for you!
Step 1 – Log in to your ICICI Online Net banking account
Step 2 – Once you are logged in, look for the option “Open a Fixed Deposit / Recurring Deposit” in the left hand menu of links and click on it. It will take you to “Service Requests” page. You can also directly click on “Service Requests” link in the left hand navigation on ‘My Accounts’ Page.
Step 3 – This link will take you to the “Service Requests” page. On the Service Requests page, click on “Click Here” button.
Step 4 – On the next page (“Requests” list page), click on the link “Open a Recurring Deposit“. You will be taken to the “Request for Opening RD” page.
Step 5 – On the “Request for Opening RD” page, select the account number from the drop down from which you want the RD amount to be debitted. Click on “Go”
Step 6 – Enter the below details on the next step – “Recurring Deposit Request Form” page:
- Amount of RD instalment – This is the amount which you want to be debited each month towards the Recurring Deposit
- Tenure of Deposit (Years) – This is the duration (in years) for which you want the money to be deposited towards the RD
- Tenure of Deposit (Months) – This is the duration (in months) for which you want the money to be deposited towards the RD
- Day of month when instalment to be debited – This is the date when you want the RD instalment to be debited from your account. The 1st instalment will be deducted on the day you start the RD. The subsequent instalments (starting from 2nd instalment) will be taken on this date every month.
- Mobile No (You can provide either Email ID or Mobile No.)
- E-mail Id (You can provide either Email ID or Mobile No.)
Once you have filled in all the mentioned details, click on “Submit” button which is located at the end of the page.
Step 7 – Clicking on “Submit” will take you to the next page where you will be shown a summary of the RD transaction which you are about to complete. Once you are satisfied, you need to enter your internet banking transaction password and click on “OK” button.
If you have followed all the above points correctly, clicking on “OK” will take you to the confirmation screen and you are done!
The confirmation screen will give you a confirmation (Service Request) number starting with “SR___”. Keep this with you for future reference.
Also Read: How to get over the fear of Investing?
Once you see the confirmation screen with the Service Request number, the Recurring Deposit Account will be created within 1 working day and a standing instruction will be set up to debit installments from the selected savings account every month for the tenure and amount selected.
Below are some points which you need to keep in mind while opening a Recurring Deposit:
- Recurring Deposits can be opened for a minimum amount of Rs.500/- and in multiples of Rs.100/-.
- The first installment shall be debited on the date of opening of the recurring deposit account. Subsequent installments shall be debited on the selected day of the month.
- Make sure sufficient funds are available in your account before the debit date each month.
- To register a nominee for your Recurring Deposit account, you need to visit any ICICI bank branch and submit the nomination request form which you can get from the branch.
- Tenure of Recurring Deposit has to be in multiples of 3 months – minimum of 6 months and maximum of 10 years. For interest rates, you can refer to this link.
- On pre-mature withdrawal of the deposit, interest will be calculated at the rate applicable for the period the deposit has actually remained with ICICI Bank, less applicable premature withdrawal penal rate.
- Penalty is charged at monthly interest at the rate of Rs.12 per Rs.1000 for all delayed installments.
- On maturity, the funds will be credited to the Savings Account selected by you while opening the RD.
You can check the new Recurring Deposit(s) created using the ICICI Online Netbanking by logging in to your Online account and visiting My Accounts Page.
I hope this quick tutorial helps you in getting started with your first step towards early investment and enabled you to start a Recurring Deposit Account with ICICI Bank. If you face any issues whatsoever, feel free to contact me through the comments section below or via the Contact Us section of this blog.