Recurring deposit in banks vs recurring deposit in post office: Those looking to start an RD mostly tend to think about going to a bank. But it may not always be the prudent option. With the interest rate on post office RDs being increased to 6.7% for the October-December quarter, it may be worth your time to check out the features of a recurring deposit at your nearest post office. Before investing in RD, check where you will get the best deal — bank or post office?
RD interest rates: The recurring deposit scheme provides an opportunity to build up savings through regular monthly deposits of fixed sum over a period of time
Investors must commit to a specific schedule of monthly payments for a set period. The depositor can get a lump at maturity because of the account s flexibility, minimal monthly deposits, and low maintenance requirements.
A recurring deposit account allows you to invest a specific amount each month until the end of the tenure, unlike a typical fixed deposit, which requires a single sum investment at one time.