Recurring Deposit

As Sathish learned more about Fixed deposits, he came to know that there are two ways to invest money in fixed deposits- as a lump sum or a fixed amount monthly. Recurring deposits are fixed deposits where customers can invest a fixed sum of money every month. The money can be debited from a savings/current bank account on a fixed date every month. Recurring deposits offer customers a chance to build up a savings corpus. It also brings a habit of investment in people. In most cases, recurring deposits can be made for a period of 6 months to 10 years.

When a recurring deposit is opened, the maturity value is indicated assuming the customer invests the fixed sum for the fixed deposit term agreed upon. Some banks provide loans on recurring deposits.