Banks don’t allow you to withdraw money from your Recurring Deposit. But if you choose to close the account before maturity, you might have to pay a penalty for it. You wouldn’t want to do that, would you? While opening a Recurring Deposit, you need to be mentally prepared that it’s not going to be an easy journey. It’s going to very difficult trying to curb the temptation to close that account and get your money. But if you really want to see your money grow, just let it be. If you think you’re patient enough, go ahead and open that Recurring Deposit.
Also, TDS deductions have been made compulsory for your Recurring Deposit if your income from deposits for a financial year exceeds Rs. 10,000. Earlier, TDS deductions were made only for Fixed Deposits. This new change actually made a lot of people reconsider their Recurring Deposits. Some even opted for premature closures. This might make you give that Recurring Deposit a second thought as well. Fixed Deposits might be a better option if you are looking to invest a lumpsum.
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