Recurring Deposit

A Recurring Deposit, known as RD, is a unique term-deposit given by Indian banks. It is an investment tool that allows users to make regular installments and receive reasonable returns. Because of the monthly deposit aspect and an interest component, it frequently gives users/individuals with flexibility and convenience of investment.However, it is critical to understand the distinction between RDs and Fixed Deposits/FDs. In most ways, RDs are adaptable.

An RD account holder can opt to invest a fixed amount each month while earning a reasonable rate of return. RDs are an excellent saving-and-investment vehicle.A Recurring Deposit can be funded on a regular basis by using Standing Instructions, which are typically instructions issued to the bank by the customer to credit the RD account every month from his or her Savings or Current Account.Most major banks in India provide Recurring Deposit Accounts with terms ranging from 6 months to 10 years, with the option for people to choose a period based on their needs. However, once determined, the interest rate does not fluctuate over the tenure; and upon maturity, the individual will be paid a lump sum amount that comprises both the regular investments and the interest gained.