Introduction

Saving regularly is a powerful habit, and a Recurring Deposit (RD) makes it easier to achieve your financial goals. With small monthly investments, you can build a sizeable corpus while enjoying guaranteed returns without any risk of market fluctuations.

What is Recurring Deposit?

A Recurring Deposit (RD) is a savings scheme offered by banks and financial institutions where you deposit a fixed amount every month for a pre-decided period. In return, you earn interest at a fixed rate, and both your monthly deposits and earned interest are paid back to you at the end of the term.

Example:

Key Features of Recurring Deposits

• ✅ Fixed Monthly Investment: Deposit a specific amount each month.
• ✅ Flexible Tenure: Choose from as short as 6 months to up to 10 years.
• ✅ Assured Returns: Interest rates remain fixed throughout the RD tenure.
• ✅ Loan Facility: Borrow against your RD in times of financial need.
• ✅ Premature Withdrawal Option: Withdraw early with a minor penalty if necessary.
• ✅ Easy Account Management: Open and manage your RD easily online or at the branch.

Why Should You Invest in a Recurring Deposit?

• Disciplined Saving: Helps you save systematically every month.
• Safe and Secure: No impact from stock market ups and downs.
• Affordable: Start saving with small monthly contributions.
• Achieve Financial Goals: Great for short- to medium-term goals like buying a car, planning a vacation, or building an emergency fund.
• Predictable Returns: Know exactly how much you will receive at the end.

You can find various banks' RD (Recurring Deposit) calculator tools here, which you can use based on your bank preference to calculate your RD maturity amount.