Recurring deposit is an investment opportunity in which people who make regular and timely deposits in the bank are given a decent amount of interest at the time of maturity on a monthly basis. It is a unique term deposit provided by all the major banks for a period ranging between at least six months and a maximum of ten years. Owing to the severe competition among the banks, the interest rates are flexible and relatively high, making it an attractive investment tool to inculcate saving habits. This facility is also offered at the post offices where an account can be opened with a minimum amount of Rs 10.
The interest rate remains the same throughout the tenure and the interest amount can be calculate using the RD calculator.
Here is a comparison of interest rates on the recurring deposits offered by the major banks:
