Recurring Deposit is also known as RD in short. It is one of the most famous forms of saving schemes in India. RD allows you to deposit a fixed amount regularly with your bank and you will get the interest on the deposited amount.
The advantage of a recurring deposit is that you can have the same higher interest rate. In a recurring deposit, you can make ongoing periodic investments in the deposit, unlike in a fixed deposit, you need to deposit the total amount when you the fixed deposit account.
Features of opening a Recurring Deposit
- Allows you to deposit money continuously.
- Ideal for people with a regular, stable income.
- It is for a pre-determined fixed tenure.
- It has a higher rate of interest.
Yes, it is possible to withdraw the amount of your recurring deposit. You just have to keep in mind that may there will be a fee as a penalty for withdrawing the money earlier. The lesser the original tenure, the lower the penalty will be.
Any Indian resident can be eligible to open a recurring deposit account in any of the banks which offers the facility. Each bank has its own rules on the minimum opening balance.