Characteristics of Recurring Deposits

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    For how long do you need to invest?

You can invest in recurring deposits for a period of six months to ten years. This period is known as investment tenure.

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    Where can you find recurring deposits to invest in?

Recurring deposits are offered by all banks, post offices and Non-Banking Financial Companies (NBFCs).

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    What are the interest rates offered by Recurring Deposits?

Recurring deposits offer interest rates ranging from 2.50% to 8.50%. The longer your investment tenure, the greater the interest you can earn.

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    What is the minimum amount you can invest every month?

Minimum investment in a recurring deposit can be ₹10/- (in a post office recurring deposit) and ₹100/- (for bank recurring deposits).

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    Are there any additional returns for the senior citizens?

Yes, senior citizens can get additional returns of 0.50% to 0.80%.

Keep scrolling to learn more about recurring deposits.

What are the features of recurring deposits?

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    Gives fixed returns

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    Gives returns at a fixed period (say quarterly or three months)

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    Lower risk on investment

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    Can withdraw before maturity with a penalty

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    Returns both interests and invested amount after maturity

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    Can be invested for a shorter period

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    Low minimum monthly investment

What are the benefits of recurring deposits?

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    Inculcates savings habit

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    Can get a loan against RD

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    Good for small savers

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    Available for long and short tenures

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    Low-risk category investment

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    Available at banks, post offices and NBFCs

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    Simple and hassle-free investing

Move on to know about things to take care while investing in a Recurring Deposit

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