A Recurring Deposit (RD) is a type of Institutional Deposit that allows you to deposit a fixed amount of money into an account regularly over a period of time:
Characteristics RDs are a popular investment vehicle in India. They offer higher interest rates than savings accounts and the interest rate remains constant throughout the tenure. RDs are generally more flexible than fixed deposit schemes.
RDs encourage regular savings and help you accumulate a lot of money over time. They are considered safe investment options with moderate returns.
How to open RD? To open an RD account, you can visit an institution or post office, fill a form and submit it along with the required documents.
Flexibility RDs offer flexibility in terms of investment amount and tenure. The minimum amount varies from institution to institution and the tenure usually ranges from 6 months to 10 years.
Payment of interest You can choose to receive interest at fixed intervals or after maturity.
withdraw money You can withdraw the entire amount on maturity. You can withdraw up to 50% of the balance after one year.