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Q.

What is "Recurring Deposit" & what are its benefits ?

Tags: money, real estate, deposit
Asked by urmila, 27 Jan '11 11:47 am
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Answers (4)

 
1.

Benefits of recurring deposit scheme
The Recurring Deposit scheme, like all other investment avenues, comes with its own set of benefits and they are:
Minimum amount of Deposit is Rs.10. No maximum limit. Deposit should be made every month within the calendar month. Default fee is chargeable for delayed deposit at 0.20 P. per month of delay, for Rs. 10 Denomination.
Maximum defaults allowed in an account is four (4). After four defaults the account is treated as discontinued. Discontinued account can be revived by paying defaulted deposits, within two months from the fifth default. If it is not so revived, the account cannot be continued.
For advance deposits, including deposit for current month, rebate is allowed at the rate: Denomination Rs.10. 6 advance deposits.Re.1/- 12 advance deposits: 4/-
Premature closure is permitted on completion of 3 years from the date of opening. Interest is to be calculated as per the rules and rate applicable to individual savings account. at the r ...more
Answered by ankit shivam, 27 Jan '11 11:52 am

 
  
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2.

RD a/c is savings according to pocket and not affecting pocket.... one can save upto his own flexibility and can get good intrst as well. It doesnot fell like burden on any as its monthly
Answered by Sushmita Kapoor, 27 Jan '11 12:03 pm

 
  
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3.

The Recurring deposit account is an account in the bank (or a Post office in some countries) where an investor deposits a fixed amount of money every month for a fixed tenure (mostly ranging from one year to five years). This scheme is meant for investors who want to deposit a fixed amount every month, in order to get a lump sum after some years. The small monthly savings in the Recurring Deposit scheme enable the depositor to accumulate a handsome amount on maturity. Interest at term deposit rates is computable on quarterly compounded basis.

Read more: http://wiki.answers.com/Q/What_are_recurring_deposit_accounts#ixz z1CDKwzGEi
Answered by mohd basheer, 27 Jan '11 11:50 am

 
  
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4.

Deposit monthly some fixed amount in bank & you will get interest. good for monthly investment.
Answered by Gurdeep Chawla, 27 Jan '11 11:50 am

 
  
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