Recurring Deposit (RD)
Definition
A deposit where a fixed amount is paid in every month for a set term at a fixed rate.A recurring deposit lets a saver deposit a fixed amount every month for a chosen tenure, earning a fixed interest rate. It suits regular saving from monthly income, where an FD suits a lump sum already in hand. Both are fixed-rate deposits, but they solve different problems.
Related guides
Related terms
- Fixed Deposit (FD) — A deposit that locks a sum with a bank for a fixed term at a pre-agreed interest rate.
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