what do u understand by recurring account?
Answers
Explanation:
The Recurring deposit account is an account in the bank or in a Post office where a depositor deposits a preset amount of money every month for a fixed time period (generally ranging from one year to five years). This format is meant for persons who would like to deposit a fixed amount every month, with the purpose of getting a lump sum after a few years. The little monthly savings in the Recurring Deposit plan allow the saver to build up an attractive sum on maturity. Interest rate in this kind of deposit scheme is calculable on quarterly compounded based.
ANSWER:-
A recurring Deposit, commonly known as RD, is a unique term deposit that is offered by Indian bank. It comes with an option of flexibility for customers in the choice of investment amount and tenure accomplished by multiple other benefits.
Available in flexible tenure options ranging from 6 months to 10years ,this investment tool offered by multiple banks and NBFCs helps channelized monthly savings for long or short-term corpus creation.
Investors can thus choose a minimum amount to be invested every month over the term for assured wealth generation.
If you don't have a lump sum account to meet short-term goals, depositing a small share of your income to the RD account every month serves the purpose well....