Citibank Recurring Deposit Rate

Citibank offers a convenient and safe way of depositing your money into recurring deposits and earn higher rate of interest. It allows opening recurring deposits on the Citibank Online banking or Citi Mobile smart banking app.

Benefits of Citibank Recurring Deposit Account

• Safe and convenient way to operate recurring deposit accounts. Accounts can be opened online or on the Citi Mobile app
• People with regular fixed income can open recurring deposit accounts to save their surplus money and earn interests higher than a savings bank account
• Shorter tenures compared to other banks to give the customer quicker liquidity
• Minimum monthly balance starting from Rs.1000/-
• Higher rate of interest for long term recurring deposits
• Option to set standing instructions at the time of opening the account

Features of Citibank Recurring Deposit Account

• The minimum monthly instalment is Rs.1000/- and the maximum is Rs.20,000/-
• Citibank offers recurring deposit tenures of 12 months to 24 months only. Shorter tenures offer quicker liquidity.
• Tax deducted at source (TDS) is applicable when the interest income crosses Rs.40,000 in a financial year
• Interest is calculated on a quarterly basis
• Premature withdrawal allowed after deduction of corresponding penalty charges
• Partial withdrawal is not allowed for Citibank recurring deposits
• Automatic conversion of the maturity proceeds into a fixed deposit is not available with Citibank. You need to fill a fresh to open a fixed deposit with the maturity proceeds.
• Senior citizens are offered a higher rate of interest

Who can open a Recurring Deposit account with Citibank?

Citibank Recurring Deposit Interest Rates

Citibank has been offering banking and financial services in India for the past 20 years. They have features like online banking and the Citi mobile app that makes banking transactions safe and easy. They offer competitive interest rates on all their deposit accounts. The latest interest rates offered on recurring deposits is given below

Advantages of Opening a Recurring Deposit Account

• Instils the habit of regular saving among customers with regular fixed income.
• Doesn’t require a lumpsum deposit at the time of account opening. A recurring deposit account can be opened with amount starting from as low as Rs.1000. Some banks have recurring deposit accounts that can be started with just Rs.100
• Lump sum received at maturity, along with the accrued interest amount. This allows for saving for planned expenditures at the end of the tenure.
• The rate of interest is higher as compared to an ordinary saving bank account
• Tenures ranging from 6 months to 10 years
• Recurring Deposit Interest rate is fixed so you are assured of a steady return
• Loan / overdraft facility available with some banks.
• Though the returns are lower compared to other forms of investment, a recurring deposit is safe and risk-free and offers quicker

Disadvantages of Opening a Recurring Deposit Account

• Returns is higher only when invested for longer periods of time.
• Though it offers quicker liquidity, premature or partial withdrawal attracts penalty charges, which results in lower returns
• Recurring deposit interest earnings are taxable

Citibank Recurring Deposit FAQs