Recurring deposit account is opened for what duration ?
Answers
Answer:
6 months to 10 years
Explanation:
Recurring deposit schemes aim to give a regular habit of savings among the public. The minimum amount can be as small as Rs 10 and it depends upon bank to bank. The minimum period for the deposition is 6 months and the maximum period is about 10 years. Recurring deposit helps customer to invest an amount of their choice and save as much as the customer can. The interest rate usually ranges from 5.00% - 7.85%, and its varies from bank to bank.
Recurring Deposit
Explanation:
People with regular income, can opt to deposit a fixed amount every month into their recurring deposit account. The amount deposited will earn an interest as per the terms of the bank and it depends on the period of RD. The period of RD can vary from a minimum of six months to maximum of ten years.
TDS (Tax Deducted at Source) is applicable on the interest earned from RD when the interested earned in a year exceeds Rs. 10,000.