Write a brief note on Recurring deposit account.
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Answer: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).
Explanation:
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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.
Tax Deducted at Source ( TDS ) is applicable on the interest earned from RD when the interested earned in a year exceeds Rs. 10,000.
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