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Recurring Account
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Recurring Account
A Recurring Account is a type of savings account where individuals can deposit a fixed sum of money at regular intervals, usually monthly. This account offers a disciplined approach to saving, as customers commit to depositing a predetermined amount regularly for a specified duration, typically ranging from 6 months to 10 years.
Recurring Accounts are beneficial for individuals who want to cultivate a habit of regular saving and earn interest on their deposits over time.
Documents Required
For personal accounts
- Passport size photos of each applicant
- For proof of identity, a copy of any one of the following: Income Tax PAN Card/Driving License/Passport/Voter ID Card/Aadhar Card (Bring the original along for verification)
- For proof of income, latest electric bill/gas connection bill/telephone bill (photocopy of any one) in the name of the applicant (original to be brought along for verification)
- Those who do not have PAN number should fill Form No. 60 separately. In such a case, two photocopies of the ID and residential proof will have to be provided.
For institution/trust accounts
- Registration certificate of the organization/trust, constitution
- Resolution on opening the account and the signatures of the office bearers who will administer the account
- Passport size photographs of the office bearers signing the account.
- Income Tax PAN number of the organization/trust. If there is no number, then Form No. 60 should be filled separately.
- Personal evidence of all the office bearers administering the account on behalf of the organization/trust will have to be submitted in the details mentioned below.
Advantages For Account Holder :
- Regular Savings Habit: Encourages disciplined savings by setting aside a fixed amount each month.
- Interest Earnings: Earns interest on the deposited amount, typically at a higher rate than a regular savings account.
- Financial Planning: Provides a structured way to save for specific purposes without the temptation to spend the funds.
- Flexible Terms: Offers various tenures to choose from, catering to different financial goals and timelines.
- Safety and Security: Funds are secure in a bank account, providing peace of mind compared to keeping cash at home.
- Easy Access to Loans: Makes it easier to get credit due to the track record of regular savings.
- No Market Risk: Ensures a guaranteed return on investment.
- Nomination Facility: Allows the account holder to nominate a beneficiary, ensuring smooth transfer of funds in case of any unforeseen events.
- Online and Mobile Banking: Enables customers to track their savings, make deposits, and monitor interest accrual conveniently.
- Minimal Initial Deposit: Requires a low initial deposit to start the account, making it accessible for a wide range of customers.
- Tax Benefits: Depending on the country and specific tax regulations, there might be tax benefits associated with interest earned on recurring deposits.
