Menu
Online Banking Solution India
Investments are a popular financial instrument in India. Many families consider it wise to start saving for any financial emergencies in the future. Since it has a massive population and diverse citizens, many investment options are available with different schemes and tenures. They offer guaranteed returns and induce the habit of saving in many individuals. Whether they are teenagers, adults, or even senior citizens, they can always approach their bank’s nearest branch and enrol for an account.
A recurring deposit is a low-risk investment tool with assured returns and a flexible tenure for customers to invest without any hassles. They can choose the amount to invest based on their capacity and see it multiply and receive interest throughout the deposit tenure. This investment tool is available at all banks and NBFCs to channelise monthly savings for long- and short-term corpus creation ranging from six months to 10 years. Investors must choose the minimum monthly deposit amount over the term for assured wealth generation. An RD account facility is available at post offices as well. While the minimum deposit amount may vary from institutions, investors can start depositing an amount as low as INR 100 per month as per their budget. However, consider choosing a scheme that allows a suitable investment amount according to the capacity and provides a maturity option suiting the investor’s long-term and short-term goals. A recurring deposit account offers many benefits to investors. It helps in the accumulation of capital to meet financial goals and is a smart investment option. It also enables them to earn fixed interest on the amount invested at frequent intervals until maturity. The following are the features it offers: Minimum investment: The minimum investment amount for this account varies from banks and financial institutions. It is safer to check the terms and conditions of the concerned bank to avoid any trouble in the future. Deposit term: The minimum deposit tenure for this account is six months and can exceed up to 10 years. There is a lot of flexibility when choosing the investment tenure according to the financial status and other priorities. Interest rate: Banks mention the rate of interest offered on these accounts in detail on the banking app or website. The individual will always earn a higher interest rate on these accounts as compared to a regular savings account. The interest rate offered on them is like that of fixed deposit accounts. However, the periodic investment instead of lumpsum amount makes it suitable to create a corpus through monthly savings. Withdrawal procedure: While applying for an RD online, individuals must remember that they can withdraw the amount only after the account reaches maturity. Those who are trying to withdraw it before the maturity period must pay premature penalty charges.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
October 2020
Categories |