Recurring Deposit
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A recurring deposit (RD) is a type of savings plan offered by banks and other financial institutions. It is designed for individuals who want to save a fixed amount of money on a regular basis, usually monthly. The depositor agrees to make a fixed deposit each month for a specified period of time, usually ranging from 12 months to 10 years. In return, the depositor earns a higher rate of interest than a regular savings account. At the end of the term, the depositor receives the accumulated savings, along with the accumulated interest. RDs are typically insured by the government, so they are considered a safe and secure way to save and grow money. The minimum deposit amount and the frequency of the deposits may vary depending on the financial institution, so it is important to carefully read and understand the terms and conditions before opening an account. Additionally, some financial institutions may allow the depositor to make partial withdrawals before the end of the term, although this may incur a penalty.
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