I started my career with freelancing in the year 2020 and since then I have always tried to save money as much as possible. I asked the bank officials about some schemes and one of them asked me to opt for Recurring Deposits. I had no idea what Recurring Deposit is or
how Recurring Deposit works so asked him to share more details about it. It is then I learnt its definition and advantages so let me help you all know about it as well.
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What is a Recurring Deposit?Recurring Deposit is a kind of term deposit where an individual can deposit money monthly and earn interest which is equal to the interest on Fixed Deposits. Usually people with low salary or stipend invest in such deposits but that does not mean others cannot opt for Recurring Deposit.
How does a Recurring Deposit work?
In FDs or Fixed Deposits, a person deposits a bulk of money all together and not monthly or yearly and gets the amount as well as the interest on it after the term of that FD gets over. However, in Recurring Deposits, a person can deposit money monthly. I used to deposit Rs 2,000, but you can deposit more or less and after a certain period of time, on a particular date you will get this money along with the interest.
This is the simplest answer for your query: how
does Recurring Deposit work?
What is the minimum and maximum period of times of Recurring Deposit?The minimum period for RD is 6 months and the maximum is 10 years.
I hope these details are enough to help you understand how Recurring Deposit works.
Read More:What is recurring deposit?
How to calculate interest on FD?
Is Term Deposit and Fixed Deposit same?
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How Does Recurring Deposit Work?
Krishna Pathak
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1
3 Year
2022-10-13T08:14:51+00:00 2022-10-13T08:14:53+00:00Comment
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