BANKING AFFAIRS

Detailed explanation-1: -Thus, the Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of the fixed sum over a fixed period of time. The minimum period of an RD is 6 months, and the maximum is 10 years.

Detailed explanation-2: -Recurring deposit schemes allow customers an opportunity to build up their savings through regular monthly deposits of a fixed sum over a fixed period of time.

Detailed explanation-3: -A Recurring Deposit, commonly known as RD, is a unique term-deposit that is offered by Indian Banks. It is an investment tool which allows people to make regular deposits and earn decent returns on the investment.

Detailed explanation-4: -In Fixed Deposit, an amount is deposited for a fixed period of time. A fixed deposit provides interest on the deposited amount. Whereas, in Recurring Deposits, the customer deposits fixed amounts in small intervals for a long period. The main purpose of a RD is to develop the habit of saving on a regular basis.

Detailed explanation-5: -Before the country was taken over by systematic investment plans (SIP) of mutual funds, a recurring deposit was the most popular way of saving money regularly for a guaranteed interest rate. Designed to save any amount over a period of time, RDs are an advanced version of the fixed deposit.