Small investment Assured Returns with Recurring Deposit
Recurring Deposit [RD] is a kind of Unique Term Deposit offered by banks for the customers of banks in India helping people earning regular incomes to deposit a fixed amount from their earning every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.
In case of money withdrawn from the RD account before maturity?
Normally banks don’t allow premature and mid-term withdrawals in RD’s.
Customers need to pay penalty for closing RD account before the maturity period is completed, for premature withdrawal of the RD, amount differs from bank to bank.
Bank RD vs Bank FD:
- RD allows customers to make regular deposits and earn decent returns on their investment after the maturity period.
- Customers can choose a particular amount to invest each month.
Basically, FDs are rigid, not ideal for short terms the same as investing in mutual funds for long-term to get high returns.
Recurring Deposit is an ideal investment cum savings option for the customer.
Almost all the banks in India offers Recurring Deposit Account with a term as per their needs.
RD’s and FD’s have fixed interest rate fixed by the bank while starting the deposit account and cannot be changed during the tenure, unlike mutual funds whose amount changes with markets movement like Equity funds, Balanced funds, etc.
On maturity of RD’s, the individual will be paid a lumpsum amount which including regular, periodic investments and the interest earned on them.
Few Recurring Deposit Scheme in India:
- Allahabad Bank.
- IndusInd bank.
- ICICI Bank.
- HDFC Bank.
- J&K Bank.
- Axis Bank.
All these things you should know while starting bank RD and if any doubt ask but never stop learning #knowandask