When investing in fixed deposits, you need to invest a lumpsum amount in a single go. However, we all need a stable and secure monthly investment option, where we can deposit a fixed amount regularly to create a corpus over time, in a disciplined manner.

To fulfil this need, Equals Nidhi now offers a Recurring Deposit, wherein you can invest in small monthly deposits. The interest rate prevailing on the date of every deposit will be applicable to that particular deposit.

It’s mandatory to become member of Equals Nidhi Limited by purchasing minimum 10 share of face value Rs.10/- each.

Required KYC Documents:

Latest photograph 2. PAN card 3. Any one of the below: a. Aadhar Card b. Passport c. Driving License d. Job card issued by NREGA e. Voter ID card

The following additional documents need to be submitted along with application form:

a) Account Payee Cheque for 1st deposit b) NACH mandate for subsequent deposits

Maturity

The accumulated RD will on the ordinary course mature for payment 30 days after the date of payment of the last installment whichever is later. RD passbook will be issued to each depositor which will incorporate terms and condition.

Interest Rate

The interest rate prevailing on the date of each monthly deposit will be applicable to that particular deposit.

Tenor

Equals Nidhi Recurring Deposit has tenor options ranging from 6 months to 60 months. You even have an option to choose any one of day to make your monthly deposit. However, the date you choose once, will remain fixed for the rest of the deposits.

Minimum Deposit

You can look at an deposit of Rs. 2,500 monthly to start a Recurring Deposit.

Payment Method

You need to make the first payment by account payee cheque so that the bank account gets registered. Subsequent payment for deposits will be deducted from the depositor’s bank account through NACH mandate issued in favor of ENL and duly registered with Depositor’s Bank.

Pre-mature Withdrawal

Premature withdrawal is permitted for either one or more deposit under the RD provided the FD has completed more than 3 months from the date of its issuance. Current RBI regulations on premature withdrawal will be applicable.

Loan Against Deposit

You may also avail loan against each deposit under RD as per the applicable norms.

High Stability and Credibility

Make a smart deposit choice with a Recurring Deposit with Equals Nidhi , and keep getting guaranteed returns.

Is there a penalty if I do not have money in my account for deposit?

No bounce charges will be levied by Equals Nidhi Limited in case the depositor misses his/her monthly deposit. Bounce charges may be levied by the Bank of the depositor for NACH dishonour and in that case ENL will not be held responsible.

Is a joint deposit possible?

Yes. A joint deposit account can be opened under the Recurring Deposit. It will follow the same guidelines as a regular Equals Nidhi Fixed Deposits.

Will I get receipts for all deposits?

Yes. You will be issued separate Deposit Receipt for each deposit in line with existing deposit program guidelines.

Is the Auto-renew facility available?

No, auto renewal option is not available for deposits through Recurring Deposit. To renew every deposit, a fresh renewal form needs to be filled and submitted.

Can I stop the Deposit Plan anytime I want?

Yes. In case you feel the need, you can cancel your NACH Mandate anytime in between and stop the Recurring Deposit payment.

Tax Saving Recurring Deposit

The interest earned by the depositor on a recurring deposit account is taxable. The amount of Tax Deductible at Source (TDS) is dependent on the income per annum of the depositor. The three different income slabs and the applicable TDS on it are:

For Annual Income of Less than Rs.2.5 Lakh:For people earning less than Rs. 2.5 Lakh per annum, the TDS applicable is 10% of the interest earned on the recurring deposit account if the interest earned on the principal amount exceeds Rs.10,000. To avoid any payment of tax on the interest, it can be done so by claiming refund of the TDS deducted. This can be done by submitting Form 15G to the income tax department.

For Annual Income between Rs.2.5 Lakh and Rs.5 Lakh:For people earning an annual income ranging between Rs.2.5 Lakh to Rs.5 Lakh, the TDS applicable is 10% of the total income earned as interest on the principal amount in the recurring deposit account although it should exceed Rs.10,000.

For Annual Income between Rs.5 Lakh and Rs.10 Lakh:For people earning an annual income ranging between Rs.2.5 Lakh to Rs.5 Lakh, the TDS applicable is 10% of the total income earned as interest on the principal amount in the recurring deposit account although it should exceed Rs.10,000. The income tax to be paid by the person earning an annual income between Rs.5 Lakh and Rs.10 Lakh is 20% of the total income. Will deduct only 10% TDS which means when the person files the ITR, tax has to be paid at the rate of 10.3%.

For Annual Income between more than Rs.10 Lakh:For people earning an annual income ranging between Rs.2.5 Lakh to Rs.5 Lakh, the TDS applicable is 10% of the total income earned as interest on the principal amount in the recurring deposit account although it should exceed Rs.10,000. The income tax to be paid by the person earning an annual income between Rs.5 Lakh and Rs.10 Lakh is 30% of the total income. Will deduct only 10% TDS which means when the person files the ITR, tax has to be paid at the rate of 20.6%.