What Documents Do You Require for an RD?
5 min read | 5 months ago
When it comes to building savings or wealth over a sustained period, there is no matching the popularity of RDs or recurring deposits. Chances are that you will have already heard of these investments, while many have invested in these instruments for their financial security and guaranteed returns. Another plus point is that the RD account interest rate is usually higher than regular savings account interest rates. Yet, opening an RD comes with its own set of formalities including documentation and the application process. Let us take a look at the documents that you require for this purpose.
Personal Details
The first set of documents that you will have to provide are those that establish your personal identity. In this case, it can be a copy of your Aadhaar card, PAN card, passport, and even your voter ID card. PAN cards are usually compulsory along with other identity proof documents at most banks. Moreover, ensure that the information on these documents is correct and current. If any of the details is wrong, you may be deemed ineligible to open an RD account.
Address Proof
In addition to your identity proof documents, you need to provide documents that confirm your current residential address. Utility bills, rental agreements and bank statements are some of the options that you can submit when applying for an RD account. These documents confirm that you are an Indian citizen and resident. It is paramount to ensure the information indicated in the proof of address is updated and accurate. You need to update your address in your Aadhaar card or other documents if you have shifted recently or sometime earlier.
RD Application Process
Once you have all the required documents, you can start the RD application process. The first step is to choose a bank or financial institution that offers RD accounts. You can compare the RD account interest rates offered by different banks and choose the one that is best. If you want to open an RD account, you can opt for banks like Unity Small Finance Bank, which offer online banking services and easy payment options directly linked to your savings account. All you need to do is provide the required documents along with submitting the application form. However, other banks or financial institutions may also require an initial deposit to start the RD account sometimes.
Importance of Documents
So why are all these documents so important? The documents required for opening an RD account are indispensable because they establish your identity, income, and residential address. The bank or financial institution uses this information to verify your eligibility for the RD account and the amount that you can invest. Your application may be rejected if you do not provide the required documents, and even if any of the information contained in them is found to be outdated or incorrect. Hence, this is one aspect that you should not neglect while filling up the application form. For any guidance, you can contact the bank personnel for prompt assistance.
Conclusion
The documents required for opening an RD account are important because they
establish your eligibility for the investment in question. Make sure that you
arrange them well in advance before applying. Additionally, it is important to
compare the RD account interest rates across different banks and financial
institutions in order to maximize your returns on your investments.
Conclusion
In conclusion, both RDs and FDs have their own benefits and drawbacks, and the choice between the two depends on your individual investment goals and preferences. If you want flexibility and regular savings, RDs may be a better option, while if you have a lump sum amount and want higher returns, FDs may be a better option. Compare both these investments on the basis of the aspects. mentioned above before deciding. You can even include both of them in your portfolio for not only diversification, but also to enjoy the best of both worlds, as they call it!
FAQs
1. What documents do you need to open an RD account?
You typically need to provide your identity proof, address proof, and PAN card details to open an RD account. Some banks may also require you to submit a passport-sized photograph and an account opening form.
2. Can I open an RD account without a PAN card?
No, you cannot open an RD account without a PAN card. It is a mandatory requirement.
3. What type of identity proof is acceptable for opening an RD account?
Any government-issued ID proof like an Aadhaar card, passport, driving license, or voter's ID card is acceptable.
4. Is it necessary to provide original documents for opening an RD account?
No, photocopies of the documents are acceptable. However, you may be required to provide the original documents for verification if requested by the bank.
About Unity Small Finance Bank
Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.
