Recurring Deposit (RD) account is a kind of term deposit offered by banks in India. People with regular incomes can deposit a fixed amount every month (or in any other frequency like weekly or quarterly) into their RD account and earn interest at the rate applicable to Fixed Deposits. It’s like making FDs of a certain amount at regular intervals. For example, one can deposit Rs 1,000 every month into their RD account. This deposit matures on a specific date in the future along with all the deposits made every month. Talk to your bank regarding opening an RD account. An RD is again not as tax-efficient as a mutual fund SIP.
Subscribe & keep learning!