Recurring Deposit
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Transcript of Recurring Deposit
RECURRING DEPOSITS
*It is an account where the depositor deposits fixed amount of funds at regular intervals of time.
*The interval can be month, quarter, 6 months, or 1 year
*Interest rate is calculated on the amount deposited
*After a specified duration, the depositor receives a lump-sum amount
Where to open a recurring deposit?
*A recurring deposit can be opened at a bank, or post office
*Formal documents such as PAN card, residential proof, identity proof, etc. are required to open the account
*RD account can be opened for a period of less than 6 months, to the maximum period of 10 years
Advantages of Recurring Deposits
*There are several advantages of opening online recurring deposit; a few are listed below:
Fixed monthly investment option
Fixed duration of investment
Fixed interest rate
TDS not applicable
Flexibility of investment
Eligibility*Resident individuals
*Hindu Undivided Families
*Private & Public Limited Companies
*Trust & Societies
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