Recurring Deposit (RD), Features of Recurring Deposits

Recurring Deposit (RD)
A recurring deposit (RD) is a type of term deposit offered by banks and financial institutions that allows individuals to save a fixed amount of money regularly over a predetermined period.

Features of Recurring Deposits:
1. Regular Savings:
RDs are ideal for individuals who want to save a fixed amount of money on a regular basis.

It encourages disciplined savings as customers deposit a predetermined amount monthly for a fixed duration.

2. Fixed Tenure:
Recurring deposits have a fixed tenure, typically ranging from six months to ten years, depending on the bank or financial institution. The depositor chooses the duration at the time of opening the RD account.

3. Fixed Deposit Amount:
While the tenure is fixed, the deposit amount can vary. Customers decide on the monthly deposit amount when opening the RD account. This amount remains constant throughout the tenure of the RD.