What is Cumulative / Recurring Deposit and its use ?

asked Apr 10, 2014 in Savings by avinash (680 points)
Every common man thinks to have some preferred amount in his hand along with the satisfied expenses. As I am also looking for my financial savings to be secure in this corporate world. Can anyone help me in figuring out this plans for SAVINGS ?

1 Answer

answered Sep 7 by Michael (1,319 points)

Recurring Deposit is a traditional and safe financial instrument offered by banks. This is the most safe and easiest way of saving the money for future expenses or needs

RDs come with a fixed tenure and ROI (Rate of Interest) and the amount would realize on the maturity date.

Recurring deposits can be accumulated on a monthly basis and the interest is calculated based on the amount that is deposited where the fixed deposits are usually deposited with a lump sum of amount to draw the ROI (Return on investment) at the time of maturity date

  • RDs helps individuals to suffice there short term and long term needs
  • Recurring or cumulative deposit is helpful for the people who receive the payments monthly and for the people who are looking to save the money monthly wise.
  • No risk involved in RD
  • Smaller amounts can create a stable wealth
  • Goals are set properly when it comes to RD
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