1. What type of account it is?

Recurring Deposit (RD) Account is a combination of fixed deposit and saving product for those individual customer who prefers to save money periodically from their monthly saving for defined period of time.

2. Who can open this account?

All Nepalese individual customers including minors are eligible to open this account.

3. Can existing saving accountholders open this account?

Yes, existing account holders can easily open RD account. Whereas for new customers, they must have to open saving account first to enjoy RD account.

4. What is the Eligible amount of deposit?

The minimum or eligible amount of installment is Rs 500 and thereafter in multiple of Rs 500 per month.

5. What is the minimum and maximum period of deposit?

The minimum period of deposit is 3 months and maximum is 10 years.

6. Does the customer need to fill up any additional form to open this account?

Yes, customer need to fill up an additional form to provide certain detailed information regarding monthly installment, tenure and debit date.

7. Can customers choose their own debit amount date?

Yes, customers can choose their own debit date as per their convenient.

8. Does customer need to bear any charges for Standing Instruction (SI) in this account?

Absolutely free of cost.

9. What are the various features of account?

Features of Recurring Deposit Account is as below:

Basis

Features*

Eligible amount for Monthly Installment

NPR 500 per month (and in multiple of Rs. 500 thereafter)

Tenure

3 months

6 months

1 Year

3 Year

5 Year

7 Year

10 Year

Age Group

All (including minor)

Interest Rate

9.25% per annum(additional 0.5% can be provided after obtaining approval from concern authority)

Lump sum Deposit (at any time)

Through counter with multiple of NPR 500.

Interest Calculation

Daily

Interest Capitalization Cycle

Quarterly

Other Charge

Applicable Charge as per STC

Loan Overdraft

Up to 90% of total amount.

Overdraft Interest Rate

Recurring deposit interest rate plus 2% or BR + up to 3% whichever is higher.

Premature withdrawal

Pre matured of Recurring Deposit allowed if the period of the Recurring deposit has crossed 50% of the total duration.

For customized monthly installment requirement such as Gratuity Fund management:

Basis

Features

Eligible amount for Monthly Installment

Any amount

Tenure

3 months

6 months

1 Year

3 Year

5 Year

7 Year

10 Year

Interest Rate

9.25% per annum (additional 0.5% can be provided after obtaining approval from concern authority)

Lump sum Deposit (at any time)

Through counter

Interest Calculation

Daily

Interest Capitalization Cycle

Quarterly

Other Charge

Applicable Charge as per STC

Premature withdrawal

As per STC

Loan Overdraft

Up to 90% of total amount.

Overdraft Interest Rate

Recurring deposit interest rate plus 2% or BR + up to 3% whichever is higher.

10. Is there any Penalty in default of Payment to Recurring Deposit?

No penal charges for default of monthly installment.

11. Can customer change/alter monthly installment amount once its fixed?

The monthly installment amount once fixed cannot be altered at any later date through MoBank/i-touch or visiting the office.

12. Can customer deposit an additional amount in Recurring Deposit at any time?

Yes, customer can deposit additional amount apart from regular monthly installment with multiple of NPR 500 through Internet Banking/ Mobile Banking or over the counter in this account.


13. In which account, additional amount can be deposited?

If customer wish to deposit an additional amount to earn high interest rate in total deposited amount, the account holder should deposit the amount in Recurring Deposit.


14. Are customers allowed to enjoy Mid- term or partial withdrawal facility?

No, customers are not allowed for mid-term or partial withdrawal.


15. What will be the premature withdrawal process?

Pre matured of Recurring Deposit is allowed if the period of the Recurring deposit has crossed 50% of the total duration, whereas RD pre maturing before 50% of total duration, the premature withdrawal applicable rate shall be same as in case of premature liquidity of FD.

16. Can customer enjoy overdraft facility?

Yes, customer can enjoy Overdraft facility up to 90% of total accumulated amount with RD interest rate plus 2% or BR + up to 3% whichever is higher.

17. Is Insurance facility available in Recurring Deposit?

No, there is not insurance facility available in recurring Deposit.