Recurring deposit (RD) is a popular small savings scheme for investors seeking monthly investment in a fixed income instrument. They can open an RD account in a post office or a bank at a fixed interest rate. on the deposited amount. The interest paid on maturity is compounded quarterly.
For many investors, an RD is also one of the easiest ways to build a sizable corpus without taking market risks. An RD account has a maturity period of five years in a post office. However, banks offer RDs of up to 10-year tenure.
