An Ideal Scheme of monthly savings of salaried people, Businessman and professionals a small amount saved every month for a long period come in the handy to meet large financial commitments in the future.
Recurring deposits are term deposits more or less like fixed deposits in their very nature. They are made for specified periods of time like a year or more. The interest rates for them are the same that are applicable to fixed deposits. You just need to add fixed amounts (multiples of Rs. 100) of money to it on a monthly basis for periods of 12, 24, 36 or 60 months. The difference is that you won’t have to wait until a maturity period in case you wish to withdraw the deposit.
Recurring deposits are helpful and advantageous in many ways. The important factor is that you get good interest rates for the amount deposited. Also, whenever you are in need of money, you can always withdraw the deposit with assured interest calculated until the date of withdrawal. It empowers the customers with an opportunity to build up their savings through regular monthly deposits of a fixed sum over a fixed period of time.
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