What is RTD Full Form in Banking?

The RTD full form in Banking is Recurring Term Deposit. This is a unique term deposit that is offered by the banks in India. It is an important investment tool that allows people to make regular deposits and earn ample ROI. As it has a regular deposit factor and fixed interest features, it renders the required flexibility and ease of investment to the users.

Features of Recurring Term Deposit:

 Recurring deposit systems encourage regular saving habits. The deposit minimums vary between banks and users can invest as little as Rs 1000. Deposits can be for six months or up to ten years. The interest rate matches that of a fixed deposit and as a result, interest rates are higher than those for savings accounts. The minimum tenure of seeking RTDs are a minimum of 6 months to a maximum tenure of 10 years.

Funding Recurring Term Deposits:

Customers can finance a recurring deposit through Standing Instructions, which tell the bank to credit the account monthly from their Savings or Current Account. Premature withdrawals are also possible in RTD. However, depending on the bank, we can close your account prior to the maturity time under specific situations.

• RTD full form in Banking is Registered Transferable Deposit.