Recurring Deposit is term deposit offers by Banks of India and India Post. This deposit made a handsome return by deposit a fixed amount at a fixed interval by completing its term.
Customer needs to deposit a fixed amount of rupees for five years to gets its return. Banks are offer various RD account for various terms but Post office offer only one scheme which is five year Recurring Deposit account.
Presently India Post offers 7.3% interest rate w.e.f 01-01-2019 for any amount of investment. and this interest will be compounded quarterly. Here you can check the Revised Interest Rate Of POSB Scheme w.e.f January 2019
If anyone invest Rs. 1500 per month he will get returned of Rs. 1,08,758/- after completing 5 years. Here you can calculate any amount by using this calculator.
Features of Recurring Deposit (RD)
The main features of
Recurring Deposit schemes are effective in inculcating a regular habit of money saving.
The minimum amount that can be deposited in RD accounts may start from an amount as small as Rs.10. The minimum amount defers from bank to bank or Post office.
The minimum period of deposit starts from 6 months and may extend tothe maximum period of 10 years in most RD Accounts.
RD interest rates are equal to that offered on a Fixed Deposit, whichis generally higher than any other Savings scheme offered by banks.Using a recurring deposit calculator you can figure out how much you will get back at the end of the RD Tenure.
RD accounts do not allow premature ormid-term withdrawals. However, the bank may allow closing the account before the maturity period with a penalty for premature withdrawal.
RD offers an additional benefit of using the deposit as collateral to take a loan against the deposit.
RD can be funded periodically directly from your Savings or Current account through standing instructions given to the bank or Post office by you.