About Recurring Deposit
United Rural - Recurring Deposit
A recurring deposit (RD) is a type of savings account where you deposit a fixed amount of money at regular intervals (usually monthly) for a fixed period, earning compound interest on your deposits. This financial product encourages disciplined saving for individuals with fixed incomes or those wanting to build a corpus over time, providing a safe way to achieve financial goals with assured returns and a higher interest rate than a regular savings account.
- Key Features & Benefits
- Discipline: Encourages systematic savings by depositing a fixed amount regularly.
- Assured Returns: The interest rate is fixed for the entire tenure.
- Higher Interest Rates: RDs generally offer higher returns than savings accounts.
- Safe Investment: It's a low-risk investment option.
- Flexibility: You can choose various tenures that suit your needs.
- Loan Facility: Some banks offer loans against the security of your RD account.
- Auto-Debit: Many RDs have an auto-debit facility to ensure timely payments.
- How it Works
- Fixed Monthly Deposits: You choose a monthly installment amount and a tenure (e.g., 1 to 10 years) when you open the account.
- Interest Earnings: The bank pays compound interest on your deposits, which is typically compounded quarterly.
- Maturity: At the end of the tenure, you receive the total amount of your deposits plus the accumulated interest.