What is RD in Bank?

Recurring Deposit (RD)
1

Can you explain what is recurring deposit account in bank?

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For me personally, I feel an RD or Recurring Deposits in a bank is one of the most convenient and secure ways to save money. I like it because you get assured returns for a fixed period, and that is a big relief. That is why most of the banks and post offices in India offer this facility.

But that’s not the only perk. Let me explain the other benefits as well:

  1. The most exciting one is that it allows you to save a little amount of money each month and still earn interest on it. You don’t need to invest a large lump sum to start.
  2. Another benefit is that you can choose an RD tenure as per your financial goals. It could be for a short-term plan, like 6 months, or a long-term goal of up to 10 years.
  3. You can even take a loan against your RD, which works as a safety net for emergencies.
  4. Moreover, it makes you disciplined about saving money. I’m not naturally a saver, so the automatic feature of RD is a big help. The bank deducts the money from my savings account each month. I don’t have to do anything manually.
  5. And, lastly, opening a recurring deposit account is simple and hassle-free.

You need 3 supporting documents along with the form:

  1. PAN card
  2. Proof of residence
  3. The first month’s amount