Smart Deposit (Recurring Deposit) is a special type of deposit account which enables a depositor particularly in fixed income group to save by paying into the account an agreed fixed sum of money monthly over a stipulated period. The deposits in this type of account earn compound interest on quarterly basis. Longer the period for which monthly deposits are agreed to be made higher is the rate of interest subject to rules.
| No. of months | Rate of Interest |
|---|---|
| 12 to 23 months | 8% |
| 24 to 35 months | 9% |
| 36 months and above | 10% |