Recurring Deposit (RD) Rates: At present, many government schemes are being run by the government. In such a situation, if you are thinking of investing in a scheme to secure your future, then there is no need to worry at all. We are going to tell you about such a scheme in which returns are received without any risk. Let us tell you that you get many types of accounts in the bank, like savings accounts, current accounts, fixed deposits, and recurring deposits. Today, we will talk about a recurring deposit account, which is considered to be an excellent savings option. After investing in it, you will become rich.
What is a recurring deposit?
Let us tell you that a recurring deposit, i.e., RD, is a term deposit scheme in which customers deposit a fixed amount every month. This scheme is beneficial for those who want to save gradually and also want to earn interest on it. A good fund can be prepared by adding small amounts every month.
Is RD different from FD?
In FD, a large amount has to be invested at once, whereas in RD, you deposit a fixed amount every month. RD gives investors the facility to deposit a little money every month according to their income and also earn a good interest on it. This is a disciplined and convenient way of investing.
What is the time period in the RD scheme?
Let us tell you that the duration of RD usually ranges from 6 months to 10 years. In this, you can choose the tenure according to your needs. At the same time, the interest rate fixed at the time of starting RD remains applicable for the entire period. After this, on maturity, you get a lump sum amount, which includes both your deposit amount and interest.
Know the specialty of the RD scheme
Let us tell you that the purpose of the RD scheme is to inculcate the habit of regular savings in people. Investment in the RD scheme can start from Rs 1000 or even less; this amount can be different in all banks. Talking about the time period of this scheme, this scheme can be taken for 6 months to 10 years. The special thing about this scheme is that the interest rate of RD is higher than that of a savings account and sometimes reaches close to FD. If ever you need money, you can also do a premature withdrawal under certain conditions, but its rules are different in every bank.