India's private sector banking major ICICI Bank on recently launched iWish, an online RD ( recurring deposit) product targetted primarily at young depositors.
The bank's savings account holders can book this variable RD by logging on to their Internet banking account.
Highlights of iWish...!
* The key benefit is the flexibility offered while making periodical payments. Unlike regular RDs, investors will not be penalised for missing a monthly installment. However, they will have to make up for the missed payments in the subsequent months. In other words, they will have to invest the entire amount they had committed to at the time of booking the RD.
For instance, say you have decided to invest Rs. 10,000 every month over a period of 6 months. The total investment amount, therefore, is Rs 60,000. However, due to strained cashflows, you are unable to meet your commitment in say the 4th month.
In a regular recurring deposit you will have to pay a penalty, but in case of iWish, you will be allowed to skip that month's payment.
But, you will have to invest higher amounts in the subsequent months to ensure that you meet the target of Rs. 60,000. Also, you need not make payments on a pre-decided date. Depending on your cash flows, you can direct small sums into this recurring deposit on a daily basis, too.
* The minimum duration the depositors can choose is 6 months, while the minimum amount required to open this account is Rs. 500.
* Like regular deposits, interest rates vary from 6.5 per cent (for 6 months) to 8.75 per cent (15 months to 5 years). Interest rates for senior citizens are higher by 0.5% to 0.75%.
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