In most places, the interest rate of a recurring deposit is equal to the interest rate of a fixed deposit. However, its interest rates are changed from time to time by the banks.
Recurring Deposit account
In today’s era, there are many ways to earn money from your accumulated money in the market. Equity market, post office scheme, LIC policy, investment in SIP are all such platforms where people add money and increase their profits by making money. But even today, the most traditional investment in the country is that of RD or recurring deposit. Regarding this investment, even the elders say that you will not even know that you deposit a little money every month and a big fund will be collected on seeing this.
In fact, in the olden days people used to deposit money in the piggy bank, especially to save money for the children, often the parents used to learn this kind of money. In large format, the RD of the bank. There is also interest on your money in this. The biggest advantage of depositing money here is that you not only get interest, but your money is also fully guaranteed.
This is how you will get 64,351 rupees
The interest rates of RDs vary from bank to bank, but there are also some banks which are paying 8.5% interest on RD. Usually, it gets 5 to 8 percent interest. If you go with the interest of 8 percent, then let us see how a nominal amount of Rs 870 makes 61,351 rupees. 510 rupees per month means you deposited 6120 rupees in a year. If you used this investment for 8 years at an interest rate of 8 percent, then you will get a sum of Rs 64,351 in lump sum.
What happens RD
RD means a recurring deposit, that is, depositing a certain amount on a fixed date every month. The interest rate for a recurring deposit is slightly higher than a savings account. You can open it for at least 6 months and for more than 10 years. Referring deposit account is opened in multiples of 3 months like 6 months, 9 months, 12 months or more. Usually this account is opened with a minimum investment of 500 rupees, but you can open this account for less than this at the post office or some other places.
It is also important to know
In most places, the interest rates of recurring deposits are equal to the interest rates of fixed deposits. However, its interest rates are changed from time to time by the banks. This scheme is especially good for those employed, who want to make a big fund by depositing a small amount every month. You can also close this account whenever you want. When the account is closed, you get the amount you have accumulated by adding interest.
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