ESAF Small Finance Bank

ESAF Microfinance (Evangelical Social Action Forum) is a non-banking financial company and a leading Microfinance Institute in India. ESAF Microfinance was founded on the 11th of March, 1992, in Thrissur, Kerala, and was regulated by the Reserve Bank of India. ESAF Microfinance is Kerala's first Bank to receive a banking license following independence.

This is also Kerala's first microfinance company, with ESAF beginning its lending activity of microloans in 1995. Today, this institution is known to cater to a wide number of customers. Among the varied set of products and services that the Bank offers to its customers, it is also known to offer a recurring deposit scheme. 

ESAF RD Interest Rates 2024

Here is the table to show ESAF Small Finance Bank RD interest rates:

Tenure

ESAF Bank RD interest rates for general customers

ESAF Small Finance Bank RD rates for senior citizens

181 days

5.50%

6.00%

182 days

5.00%

5.50%

183 days - 363 days

6.00%

6.50%

364 days

5.25%

5.75%

365 days - 545 days

6.00%

6.50%

546 days

5.00%

5.50%

728 days

5.25%

5.75%

547 days - 727 days

6.00%

6.50%

729 days - 909 days

6.00%

5.75%

910 days

5.25%

5.75%

911 days - 1091 days

6.00%

6.50%

ESAF Small Finance Bank Recurring Deposit

Esaf Small Finance Bank allows you to accumulate wealth over time by making recurring monthly contributions of a defined amount. It offers you a wide variety of RD alternatives with deposit terms ranging from 12 months to 120 months. 

The greatest deposit amount for an RD is unlimited. When you open an RD account, you must provide instructions for the disposition of maturity profits. 

Loans or overdrafts of up to 90% of the deposited amount are available. The rate of interest on RDs is the same as that on term deposits. The rate applicable to all Senior Citizens aged 60 and up will be 0.50% higher than the rate applicable to general consumers.

Investing in ESAF Small Finance Bank is an excellent alternative for those with little income. The advantage of RDs is that you obtain the same interest rate for the duration of the RD, even if future RD rates are lower.

Characteristics of the ESAF Small Finance Bank RD Schemes

  • The Bank will offer you a rate of interest of 6.00%
  • The interest in this scheme will be compounded quarterly.
  • The Bank will accept a minimum deposit of Rs. 500.
  • Senior citizens will have a 0.50% interest higher than general customers.

Taxation Over the ESAF Small Finance Bank RD

Interest earned is taxable based on the account holder's tax bracket. Thus he or she must pay tax on interest earned. Interest earned will be taxable as Income from Other Sources.

How to Apply for a Recurring Deposit Account from ESAF Small Finance Bank?

There are two main methods to apply for an RD from this Bank, and they are:

1) Online - Internet Banking

2) Offline - Visiting the Bank

1) Internet Banking

You can apply for the RD account through an online procedure, and you will have to follow the steps that are mentioned below:

Step 1: You will have to go to the official portal and click on the apply section.

Step 2: When you go to the apply section, you will have to click on the recurring deposit section.

Step 3: You will have to enter all the required details into the prompted sections.

Step 4: Once all the details needed have been entered, you can verify the details and click on submit.

Step 5: Your application will get approved on depositing the first payment towards your RD account.

Now you have successfully opened your RD account.

2) Visiting the Bank

Another way to do this is to carry along the required documents and the money for depositing the account. Once you have these things at hand, you will have to locate the nearest branch of the Bank and visit it. On visiting the Bank, a representative of the Bank will hand you an application form, where you will have to enter all of the required details. 

Once all the details have been correctly entered into the form, you can attach copies of your documents, and with the money deposited, you will be able to open your RD account. A representative of the Bank would walk you through the whole process if you are seeking assistance.

FAQs

Q1. Can I add a nominee to my RD account like the way it is done for an FD account?

Yes. You could add a nominee to your RD account when you are applying for the account.

Q2. Is there an upper limit to the value I can deposit into my RD?

There is no maximum limit to the amount you can deposit into the RD account

Q3. Will the interest rates on my RD vary based on the tenure of the RD?

Yes. Based on tenure, the rate of interest that the Bank charges will also change.

Q4. Can I get a loan against my RD account in the Bank?

Yes, but you need to note that you can only avail up to 90% of the value of your RD amount in the account.

Q5. What will be my taxes over the interest when I do not have a PAN?

TDS of 20% is levied if you do not have a valid PAN or do not present the PAN information to the bank/post office.

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