Recurring deposits are a great way for individuals to build their savings over a period of time through regular deposits. RDs are a kind of term deposit offered by banks where people can deposit a certain amount on a monthly basis into their accounts and earn attractive interest on deposits. With Citibank, individuals can place a monthly standing instruction to automatically debit their account and book a Recurring Deposit. Account-holders can choose tenures ranging from 12 months to 24 months and book amounts ranging from Rs. 1,000 to Rs. 20,000 per month.
About Citibank: Citi began its operations in India in 1902 in Kolkata. Today, it is recognized as a significant foreign investor in the country’s financial market. Citi India offers a complete range of banking products and services to its customers. It has products catering to clients in every segment – Suvidha for those who are salaried, Citi Priority for the emerging affluent, Citigold for the affluent and Citigold Private Client for the High Net Worth individuals. Citibank India reported a profit after tax of Rs. 3,403 crores for the financial year ended March 31, 2018.
Citibank Recurring Deposit - At a Glance
| Recurring Deposit |
|---|
| Minimum Deposit - Rs. 1,00 |
| Minimum Tenure - 12 months |
| Minimum Tenure - Highlight - A monthly standing instruction can be placed to automatically debit the account. |
| Tenure | < Rs. 2 Cr P.A. Rate | Yield# |
|---|---|---|
| 365 - 400 Days | 6.00% | 6.35% |
| 401 - 540 Days | 6.50% | 6.68% |
| 541 - 731 Days | 6.00% | 6.23% |
Note: Monthly Instalment Amount: Minimum - Rs. 1,000 and Maximum - Rs. 20,000
Tenure: Minimum - 12 months and Maximum - 24 months
Source: Citibank official website
(Note - Interest rates are subject to change anytime as per Bank’s discretion.)
Following are some of the features of Citibank RD Account
An applicant will have to submit an ID proof and address proof to open a recurring deposit account with Citibank. The documents acceptable are:
To open a recurring deposit account with Citibank, one will need to contact the nearest branch and submit an application form. Additionally, it is necessary that the applicant carry the basic KYC documents, like identity proof and address proof, as the bank will require them to process the application. Citibank also provides users the facility of opening bank accounts online. To open an account through the bank’s official website, one simply needs to click on the ‘Apply Now’ option against the deposit scheme and follow the listed instructions.
Under the Income Tax Act 1961, all recurring deposits - including Citibank recurring deposit - are subject to tax. The money deposited into an RD account will be included in one’s annual income and a 10% TDS shall apply on the interest earned. In order to reduce this tax burden, one can fill either Form 15G or Form 15H. Timely submission of these documents can help ensure that TDS is not deducted from income if the RD account-holder meets certain conditions.
What is the interest rate that Citibank offers on senior citizens RDs?
Senior citizens may be paid additional interest, as prescribed by the bank from time to time.
Can I make alterations to the tenure of my ongoing Citibank Recurring Deposit?
No. One cannot make changes to the tenure and instalment due date, (auto debit date) after opening a recurring deposit account.
How to open a Citibank Recurring Deposit account without a PAN card?
In case PAN is not available, an individual will have to make a declaration in Form 60.
What is the highest interest rate offered on Citibank Recurring Deposit?
The maximum interest offered by Citibank Recurring Deposits is 6.50% for deposit duration of 401 to 540 days.
What are the RD tenure options available with Citibank Recurring Deposit?
The minimum period for which the deposit has to be maintained is 12 months, while the maximum is 24 months.
What is the minimum amount required to start a Citibank Recurring Deposit account?
The minimum amount required to open a Citibank Recurring Deposit account is Rs. 1,000.
What is the eligibility criteria to open a Citibank Recurring Deposit account?
An applicant will have to submit an ID proof and address proof to open a recurring deposit account with Citibank. The documents acceptable are:
Can I open my Citibank Recurring Deposit without a PAN card?
While it is possible to open a recurring deposit account without a PAN card, there are certain implications to it. The TDS applicable will be recovered at 20% (as against 10% with PAN card). There will be no TDS credit from the Income Tax department, and no TDS certificate shall be issued (As per CBDT circular no: 03/11). Additionally, penal TDS will apply and Form 15G/H and other exemption certificates become invalid. It must be noted that no deposit for a sum equal to or more than Rs. 50,000 shall be booked if the PAN is not provided.
