Lesson

Recurring Deposit Basics

A Recurring Deposit (RD) is a systematic savings scheme where a fixed amount is deposited each month for a chosen period, usually ranging from 6 months to 10 years. It helps individuals cultivate a savings habit and is particularly suited for students, salaried persons, and families who cannot invest a large lump sum at once. Because each installment is small and manageable, the RD builds into a significant amount over time.