Recurring Deposit (RD) is a savings scheme that encourages disciplined savings. It involves depositing a fixed amount of money at regular intervals (usually monthly) for a predetermined period.

Key features of RD:

• Regular Deposits: Fixed amounts are deposited consistently.
• Interest Earnings: Interest is accrued on the deposited amount and is typically compounded quarterly.
• Maturity Value: At the end of the tenure, the accumulated amount (principal + interest) is paid out in a lump sum.
• Flexible Tenure: RDs can be opened for various durations ranging from 6 months to 10 years.

Benefits of RD:

• Disciplined Savings: Encourages regular saving habits.
• Higher Interest Rates: Often offers higher interest rates than regular savings accounts.
• Maturity Benefits: Provides a lump sum amount at maturity, ideal for specific financial goals.
• Flexibility: Various tenure options to suit different needs.