Targetting young depositors.
ICICI Bank is doing just that through iWish, an online recurring deposit product.
The bank's savings accountholders can book this variable recurring deposit by logging on to their Internet banking account.
The key benefit is the flexibility offered while making periodical payments.
Unlike regular recurring deposits, 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 recurring deposit.
The product also allows depositors to make their goals public on Facebook so that friends can contribute towards fulfilling the wish. Put simply, it can be used as a gifting tool.
Flexibility in making periodical payments is the key benefit. It will appeal to individuals who stay away from recurring deposits fearing penalties due to missed installments
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