Recurring deposit
A recurring deposit is when a customer deposits fixed amounts at regular intervals over a long period. The main purpose of this recurring deposit is to develop a savings habit in the patrons. When the term of RD expires, the amount will be credited to the savings account along with the interest. One can open a recurring deposit with a credit society. The repeated occurrences of the deposits make it different from a fixed deposit
Advantages of Recurring Deposits:
1. It is useful for planning of the short term goals.
- Ease of investment
- In a Flexible Recurring deposit, the member will not be penalised if the amount is not deposited during a specific month. Also, in a flexible RD scheme, customer can be able to withdraw the amount from his/her RD account anytime.
Fixed Deposit
Fixed deposit is a financial investment instrument offered by Credit Societies & Other financial Institutions where investors can deposit money and get a high rate of interest than a normal savings account. This fixed deposit can also be opened through different channels like internet banking or mobile banking.
Advantages of Fixed Deposit
- Encourages Savings
- Tax benefits
- Safe Investment
- Higher rate of interest *Terms & Conditions