If we talk about the 21st century, everyone here is familiar with banking. Everyone has their bank accounts. Banks gives us financial stability which is why people find it safer to deposit their hard earned money in various bank accounts. One such account is Recurring deposit account.
Recurring deposit is also known as RD. This account is beneficial for people who wish to deposit a small amount every month, rather than storing a Lump Sum Amount.
Recurring deposit is for people who get a fixed amount of wages every month, and who wish to keep the part of their earned wages for an extended period.
Many people think that if they have their money handy, then it will get used up in some other things. For such people, the RD account is the best way for savings. If you deposit a fixed amount every month, then say after some 5-10 years your amount will be multiplied. In this way, a forced saving is created which will help you after your retirement
For example- After five years, you want to own your own house, and you require about five lacs rupees. Now if you do an RD for five years and you deposit 7000 every month, wherein you get 7% interest; then after five years after your RD maturity, you will get more than five lacs. On the other hand, if you deposit 7000 every month in your saving account, where you get only 4% interest, then after five years the amount you will get will be lesser compared to RD account.
Recurring Deposit Interest Rates vary from one bank to another. So before opening your RD account, you can check the interest rates from various banks. Many people find it difficult to calculate the interest rate about how much return they will get in the end. For such people, there are few online recurring account calculator (RD calculator) which makes their work easy. And if you’re not an online person, then you can reach your bank, and they are always there to help you out with all your doubts regarding Recurring deposit interest rates. Happy banking!
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