It is a form of low risk and safe investment option. You can deposit a specific amount every month for a fixed duration and the bank gives you interest in return. This helps saving money while allowing it to grow safely. Unlike a fixed deposit, you can withdraw money from a recurring deposit after paying a small penalty fee.

Example:
If you do not have a lump sum of money to start a fixed deposit immediately, this is an alternative option where every month you can put aside a portion of your income, say 1000 in your RD account. You shall have to keep depositing the money for a period of time like 6 months or 1 year or more depending on how long you want to invest.