Recurring Deposit is a savings option that helps you plan for your future needs. People with regular income can make a financial provision for the future by investing a small amount of their income regularly in a recurring deposit (RD) for a pre-determined period and earn interest on those investments, as high as fixed deposits. When your deposit finally matures, the lump sum including the principal and accumulated interest is paid back to you. More importantly, the interest on RD remains same throughout the term once you have invested, unlike many other investment products which are subject to periodic change. No matter what the interest rate being offered, you can easily estimate your potential earnings by using a Recurring Deposit Calculator.
Features of RD
* In FSMS , minimum amount that can be deposited is Rs. 100/- at regular intervals.
* The period of deposit is minimum 1 year and maximum five years.
* Providing the loan facility .The loan can be given upto 90% of the amount standing the credit of the account holder
Advantage of Recurring Deposit Account
Recurring deposit encourages regular savings habit among the people.
* Recurring deposit account holder can get a loan facility.
* The bank can utilise such funds for lending to businessmen.
* The bank may also invest such funds in profitable areas.
Should be at least 21 years at the time of submission of the loan application
Must have been employed by the current organization or should be involved in the current business for a specific number of years
You must be residing in Tamilnadu(South).
How is the Recurring Deposit Interest Calculated?
(Maturity value of RD - based on quarterly compounding)