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.