Recurring Deposit Account is a convenient and systematic way to save money regularly while earning attractive returns, making it an ideal option for individuals looking to build savings over time. As a type of savings account, customers do deposit a fixed amount of money at regular intervals (usually monthly) for a predetermined period, earning interest on the accumulated savings.
Benefits of an Recurring Deposit Account:
- Regular Savings: RDs encourage regular savings habits as they require you to deposit a fixed amount every month. This helps in disciplined savings and building a corpus over time.
- Flexibility: RDs offer flexibility in terms of deposit amount and tenure. You can choose the amount you want to deposit each month and the duration of the RD according to your financial goals and capacity.
- Higher Interest Rates: RDs typically offer higher interest rates compared to regular savings accounts, providing an opportunity to earn more on your savings.
- Fixed Returns: Similar to Fixed Deposits, RDs offer fixed returns as the interest rate remains constant for the duration of the deposit, providing predictability and stability in returns.
