BANKING AFFAIRS

Detailed explanation-1: -Recurring Deposit scheme provides an opportunity to build up savings through regular monthly deposit of fixed sum over a period and have sufficient funds to achieve specific financial goals at the end of specific period.

Detailed explanation-2: -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-3: -A recurring deposit is a kind of term deposit that allows users with a fixed source of income to deposit a fixed amount of money every month to the recurring deposit account. After depositing the money, the user can earn interest on it.

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: -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.