In Recurring Deposit scheme, instead of a one-time lump-sum investment, you can make a fixed monthly investment. On maturity, the Bank pays you the invested amount along with interest earned. Thus, you make equal periodic payments, and get it back with interest as a lump-sum at the time of maturity. Fixed monthly installment of Rs.100/- and above can be made for periods ranging from 1 year to 10 years.
Major attractions of RD:
- The most preferred investment scheme by the salaried / fixed monthly income group.
It automatically promotes the habit of compulsory savings. cs.
- Overdraft facility up to 90 % of the outstanding balance.
- High yield, since you get the applicable rate of interest for the whole period of deposit, even for the last monthly installment made by you.
- Facility to remit installment through internet banking or through Standing Instruction.