Taasir English News Network | Uploaded on 18-May-2019
Recurring Deposit (RD) is a kind of term deposit under which investors need to deposit a fixed amount at a fixed interval, which generates a guaranteed interest income. Unlike afixed deposit (FD) account, in which a lump-sum amount is locked in for a defined period against a fixed return, an RD account allows the investor to invest fixed amount of funds at regular intervals for instance, every month.
On maturity, the depositor is paid a lump-sum amount which includes the periodic investments and the interest income earned on them.RD interest rates are subject to change from time to time. Last week, State Bank of India revised its interest rates, according to the lender’s website.