Recurring Deposit

A recurring deposit (RD) account is a type of investment account where you deposit a fixed amount of money on a regular basis.

The content of an RD account includes:

• Deposit amount: The amount of money you deposit each month.
  
• Tenure: The length of time you will deposit money for, usually between 6 months and 10 years.
  
• Interest rate: The rate at which your money will earn interest.
  
• Interest compounding: How often the interest is added to your account.
  
• RD accounts are considered a safe and low-risk investment option because they are backed by banks and financial institutions.
  

Benefits of RD accounts:

• Higher interest rates: RDs usually have higher interest rates than savings accounts
  
• Disciplined saving: RDs help you save money consistently
  
• Fixed interest rates: The interest rate for your RD is fixed when you open the account
  
• Compounded interest: Interest is added to your account on a regular basis.
  
• Types of RD accounts Regular RD account, RD account for minors, RD account for senior citizens, and NRE/NRI recurring deposit.