RAKBANK Recurring Deposit Account

With its headquarters located in Ras Al Khaimah, RAK Bank is one of the oldest banks of the emirate founded in 1976. 52.76% of its shares are owned by the government of Ras Al Khaimah making it a public joint-stock company. Initially, RAKBANK used to deal only in the commercial banking sector. Now it has expanded its reach to personal banking which happened in the reforms of 2001. RAKBANK has over 27 branches in the UAE and offers many exceptional banking solutions and products popular among customers. RAKBANK recurring deposit account is on the top of this list. 

What is RAKBANK Recurring Account?

A RAKBANK recurring deposit account allows for clients to make monthly fixed deposits in their accounts and earn a lump sum return rate at the end of the tenor. The account is perfect for the account holders who prefer to make smaller deposits in one go and earn a regular profit. RAKBANK recurring deposit account comes with an assured rate of interest as well. This means that you will earn a fixed amount of profit on your deposit at the end of the tenure which can range from 1 to 5 years. 

Benefits of a RAKBANK Recurring Deposit Account

Owning a recurring deposit account with RAKBANK comes with an array of benefits for any account holder. Mentioned below are some of these benefits that you as an account holder can avail of:

• High Interest Rate- RAKBANK recurring deposit account offers a rate of interest as high as up to 2.5% per annum on every monthly deposit. 
• Low Monthly Deposits- The minimum monthly deposit limit for RAKBANK recurring deposit account is set at AED 350.
• Flexible Tenor-. RAKBANK offers the options of choosing a tenor from 1-5 years. Accountholders are free to choose the tenor of their RAKBANK recurring deposit account as per the need of the hour.  

Returns Guaranteed- The interest rate of the recurring deposit account is fixed and retune on deposits are guaranteed. The account holders are also given a growth chart for their deposits at the time of opening the RAKBANK recurring deposits account to track their earnings. 

Main Features of a RAKBANK Recurring Deposit Account

1. Monthly Savings Limit of RAKBANK recurring deposit account:

• Minimum– AED 350
• Maximum - AED 10,000

2. RAKBANK recurring deposit account tenure:

• Minimum- 12 months 
• Maximum- 5 years 

3. Interest will be calculated daily on the amount in the client’s RAKBANK recurring deposit account and will be compounded annually.

4. No additional fees or charges on delayed or defaulted payments.  

Interest Rate of RAKBANK Recurring Deposit Account:

• For the tenure of up to 2 years: 2% per annum 
• For the tenure of 3 to 5 years: 2.5% per annum

RAKBANK Recurring Deposit Account Eligibility Criteria

You can have a RAKBANK recurring deposit account if you clear the following stated conditions:

• Existing RAKBANK customers and account holders.
• Any savings or current account holders.
• Must be UAE national or resident. Non-residents of the UAE are not eligible.
• Must be 21 years of age at least.

How to apply for a RAKBANK Recurring Deposit Account:

• Offline Method: You can opt to open a RAKBANK recurring deposit account by physically going to any of the nearest RAKBANK branches. An authorised bank official there will aid you with the account opening procedure. You may need the basic documents like a copy of your Emirates ID, visa page copy and other supporting documents that the bank asks for. Make sure you call ahead and confirm. 
• Online Method: Clients can also opt to open a RAKBANK recurring deposit account by going to the website of RAKBANK and applying through their online banking medium. You can also use the application platform of PolicyBazaar. There are several financial experts here who can also assist you through the process of opening a RAKBANK recurring deposit account.

RAKBANK Recurring Deposit Account FAQs

Q1: When will the amount from my recurring deposit account be credited?

Ans: You will receive the amount at maturity when the recurring deposit account closes automatically. 

Q2: Can a recurring deposit be redeemed before the end of the term?

Ans: Yes, you can withdraw the money from your RAKBANK recurring deposit account before maturity. However, there will be a penalty liable in that case. 

Q3: Can the primary funding account be changed?

Ans: Yes, the primary funding account for your recurring deposit can be changed easily by visiting a RAKBANK branch. 

Q4: How is interest calculated for the RAKBANK recurring deposit account?

Ans: The interest for RAKBANK recurring deposit account is calculated on the daily closing balance of the account. It is gets compounded annually as per the final closing balance of the year. 

Q5: How should I take care of my missed instalments?

Ans: Visit any of the RAKBANK branches to make the missed or delayed payments for any given month.