Recurring Deposit (RD)
- A Recurring Deposit (RD) is a savings investment option offered by banks and financial institutions that allows individuals to deposit a fixed amount every month and earn guaranteed interest on the investment. RD is ideal for people who want to build savings gradually with disciplined monthly contributions.
- Types of Recurring Deposit Accounts
-
Regular Recurring Deposit
Senior Citizen RD
RD for Minors
Flexi Recurring Deposit
- Benefits of Recurring Deposit
Encourages disciplined savings with small monthly deposits.
Guaranteed and stable interest returns.
Low minimum deposit requirement.
Flexible tenure ranging from 6 months to 10 years.
Suitable for salaried individuals and small investors.
- Eligibility Criteria for Recurring Deposit
Indian resident individuals.
Minors can open RD accounts with guardians.
Senior citizens are eligible for special interest rates.
Joint accounts are also allowed.
- Documents Required for RD Account
Identity Proof: PAN Card / Passport / Voter ID
Address Proof: Aadhaar Card / Utility Bills
Passport size photograph
Bank account details
How Recurring Deposit Works
In a Recurring Deposit scheme, investors deposit a fixed amount every month for a predetermined period. At maturity, the investor receives the total deposited amount along with interest earned during the tenure. RD is considered one of the safest investment options as the returns are predictable and risk-free.
Recurring Deposit vs Fixed Deposit
In a Recurring Deposit scheme, investors deposit a fixed amount every month for a predetermined period. At maturity, the investor receives the total deposited amount along with interest earned during the tenure. RD is considered one of the safest investment options as the returns are predictable and risk-free.
You can also explore our
Fixed Deposit and
Mutual Fund Investment options.