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 1Hrs 5Min

Recurring Deposit - Earns interest rate up to 7.5 percentage

Do you want complete information about RD? So in this course, you will get full details about RD.

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Recurring deposit course video
 
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This course includes

 
Total course length
1Hrs 5Min
 
No of lessons
9 Videos
 
What you learn
Money Management Tips, Completion Certificate
 
 

Recurring deposits (RDs) are a type of investment vehicle offered by banks in which customers can make regular, predetermined deposits over a specific period of time. These deposits are similar to fixed deposits in that they offer a fixed interest rate and have a predetermined maturity date. However, unlike fixed deposits, which require customers to make a single lump sum deposit, RDs allow customers to make smaller, regular deposits over a longer period of time.

Customers can open an RD account by visiting a bank branch and filling out the necessary paperwork. They will then be required to make a deposit on a predetermined day each month. The amount of the deposit can vary depending on the customer's preferences and financial situation, but it must be a consistent amount each month. For example, a customer may choose to deposit $100 per month for a period of five years.

One of the main benefits of Recurring deposits is that they offer a fixed interest rate, which means that the customer can expect to earn a consistent return on their investment. This can be especially appealing for those who are looking for a safe, low-risk investment option. Additionally, RDs offer the convenience of allowing customers to make regular, manageable deposits rather than having to come up with a large sum of money all at once.

Another advantage of Recurring deposits is that they can help people develop the habit of investing regularly. By setting aside a specific amount of money each month, customers can build up a substantial sum over time. This can be especially helpful for those who may not have a lot of disposable income but still want to save and invest for the future.

RDs typically have a fixed term, which means that they mature after a certain period of time. The maturity value is the total amount that the customer will receive upon the completion of the RD term. This value is determined by the amount of the regular deposits, the length of the term, and the interest rate. Customers can choose to have the maturity value paid out in a lump sum or in regular installments.

In summary, RDs are a type of investment that allows customers to make regular, predetermined deposits over a specific period of time. They offer a fixed interest rate and have a predetermined maturity date, and can be a convenient and low-risk option for those looking to save and invest for the future.

 

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