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