A Recurring Deposit Account provides a convenient and systematic method to regularly save money while earning attractive returns, rendering it an ideal choice for individuals aiming to build savings gradually. As a type of savings account, customers deposit a fixed amount of money at regular intervals (typically monthly) for a predetermined duration, accruing 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.
