Things to Take Care of While Investing in a Recurring Deposit

Compare interest rates

Different banks offer different interest rates for recurring deposits. It is better to check, compare and choose the higher ones.

Stay alert while investing in NBFCs

Only choose NBFCs registered with the Reserve Bank of India (RBI). Beware of fraud Ponzi schemes

Choose the tenure of your deposit

Make sure you are not putting all your money in a longer-term recurring deposit. Keep some amount of money in shorter-term deposits as well.

Short-term – six to twelve months
Medium-term – More than a year to five years
Long-term – More than five years to ten year

Not for emergencies

Keep some amount of your savings in your savings bank account for emergencies. Don’t put all your savings into investments.

Premature withdrawal

Make sure you do not withdraw your recurring deposit before maturity. Premature withdrawal might sometimes not be allowed or have a penalty.

Nomination details

You should never forget to submit nomination details while opening a recurring deposit account. This will ensure that your money goes to the right person in case of your death.

To track your progress

Things to Take Care of While Investing in a Recurring Deposit

In the next section, we'll learn about how to apply for Recurring Deposits