Wednesday, June 23, 2021

Recurring Deposit

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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

  1. Allows you to deposit money continuously.
  2. Ideal for people with a regular, stable income.
  3. It is for a pre-determined fixed tenure.
  4. It has a higher rate of interest.

Withdrawal

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.

Eligibility

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.

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