Recurring Deposit

In general, the recurring deposit is really one of the most preferred schemes of investment available in India. Risk-averse investors are mainly searching for the most effective investment scheme with better returns. During that time, a recurring deposit is a right choice, since it is a straightforward and simple financial product. There are many benefits you can able to grab via recurring deposits from Finakart.

Working of recurring deposit:

Basically, in the recurring deposit scheme, the investor deposits a particular set of amounts regularly over a predefined tenure. This will generally differ between one to five years in a most effective manner. When compared to the fixed deposits, the recurring deposit is having one important differentiating point. In an FD scheme, investors need to deposit more amounts once and should not touch it for a certain period.

Therefore, people who do not have the lump amount or people who need to invest a bulk amount of money every month will go with the recurring deposit. Here, the principal amount which is deposited will be returned at the certain end of tenure which will be along with the interest. Here, the interest will be calculated on the quarterly compounding basis for the purpose of the recurring deposit.

Benefits of recurring deposit:

With the help of a recurring deposit, you can able to gain top notch benefits in a most effective manner.

Suitable for planning short term goal

The recurring deposit investment will completely give you guaranteed returns and a risk-free process. In case you are having the short term investment goals, then sure investing in stocks and mutual funds are the best choice for you. Based on the nature of this recurring deposit, the investors are completely contemplating on the short term goals. It will be on the time span of around one to three years to choose to get involved in RD.

Features of online recurring deposit

At present, most of the banks in India are offering the features of an online recurring deposit. Therefore, the process of investment has become very much easier. Customers are having the capability of depositing money in the account of recurring deposits; open another recurring deposit, view transactions, close RD account, deposit details, update information and much more. You must think about the process of investment making and earning interest without any need to leave home. It is since; the investment in the recurring deposit is very much easy online.