Recurring deposits (RDs) are a popular and secure way to save money regularly with discipline, as they require fixed monthly contributions over a chosen tenure. They offer guaranteed fixed returns, providing financial certainty and low risk since the principal is deposited with a bank.
If you're interested in a reliable and potentially lucrative investment option offered by banks, you should consider Recurring Deposits (RD). RD is a straightforward and secure choice, particularly for those seeking short-term investments.
Recurring Deposits refer to deposit schemes where investors contribute a fixed amount every month for a predetermined period, typically ranging from one to five years.
One of the main advantages of RD is that it doesn't require a large lump sum investment upfront. Instead, you can conveniently save a portion of your monthly salary by participating in this scheme. Recurring Deposits generally accrue interest on a quarterly compounding basis, ensuring a favourable return on your investment.
An RD Account allows you to regularly deposit a fixed amount with your bank or post office for a specified duration. In return, you earn interest at a predetermined rate, and upon completion of the term, you receive the principal amount along with the accumulated interest.
Banks calculate the maturity amount based on factors such as the chosen instalment, account type, and tenure selected by the depositors.
Yes, it is possible to cancel your Recurring Deposit before the specified term concludes. However, banks often do not permit partial withdrawals.
Certainly, tax savings can be achieved on Recurring Deposits if the funds are deposited for a medium-term or long-term duration in the RD account.
Yes, nominees can be added to a Recurring Deposit account to ensure their entitlement in case of any unforeseen circumstances.
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