Recurring Deposit

As the word recurring says, RD account in a bank means frequent investment of money on a higher interest rate than that of SB account. This scheme is used by those people who are salaried employees and those who want to keep aside a portion of their monthly income. Every month the account holder invests a fixed amount into this account.  Withdrawing the money before the stipulated time of maturity is normally not allowed, unless on certain conditions. On maturity, he or she gets principal as well as the interest.  It is systematic and helps to make long term savings.

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