Recurring Deposits

Recurring Deposits (RDs)

What It Is:

A savings product that offers a fixed rate of interest over a fixed period.

Key Terms:

Installment Amount: The fixed amount deposited every month
Tenure: The period for which money is locked in
Interest Rate: Rate of return on the RD
Maturity Amount: Principal + interest earned at the end of tenure
Auto renewal: Automatic renewal of RD at end of Tenure with same terms
Compounding Frequency: Interest is compounded quarterly/annually

Key Features:

Fixed monthly installments for chosen tenure
Guaranteed returns at predetermined rate
Interest compounded quarterly or annually
Premature withdrawal allowed with penalties
Auto-renewal and loan against RD options available

Benefits:

Safe and low-risk investment
Helps plan for short and medium-term goals
Offers better interest than regular savings accounts

Limitations:

Returns may not beat inflation
Premature withdrawal penalties
Limited growth vs mutual funds
Missing installments may incur charges

Types:

Regular RD: Standard monthly deposit with fixed tenure
Senior Citizen RD: Higher interest rates for Sr citizens
Tax Saver RD: Offers tax benefits under specific schemes
Bank-specific variations: Some banks offer zero-balance or auto-renewal

Best For:

Risk averse goals/investors, short term parking of funds, senior citizens; predictable monthly savings

Fun Fact

RDs are often called “discipline deposits” because they help people save small amounts regularly without stressing about market risks!

Comparison: RD vs FD vs MF (SIP)

Feature	Recurring Deposit (RD)	Fixed Deposit (FD)	SIP (Mutual Fund)
What It Is	Monthly fixed deposit for a set term	One-time lump sum deposit for a fixed term	Regular investment in mutual funds
Best For	Regular savers with a disciplined approach	Those with a lump sum amount to invest	Long-term wealth creation through markets
Returns	Fixed, predetermined interest rate	Fixed interest rate (higher than savings accounts)	Market-linked; potentially higher but volatile
Risk	Very low risk; safe option	Very low risk; safe option	Moderate to high risk; depends on market performance
Liquidity	Premature withdrawal allowed but penalized	Premature withdrawal allowed but penalized	Partial withdrawal possible; exit loads may apply
Ideal For	Short to medium-term goals (vacations, education)	Safety and guaranteed returns for a fixed period	Long-term goals like retirement and wealth growth

Recurring Deposits (RDs)

What It Is:

Key Terms:

Key Features:

Benefits:

Limitations:

Types:

Best For:

Fun Fact

Comparison: RD vs FD vs MF (SIP)

Famli

Quick Links

Glossary

Contact Info

We are launching for beta customers soon and would love your feedback.

Recurring Deposits (RDs)

What It Is:

Key Terms:

Key Features:

Benefits:

Limitations:

Types:

Best For:

Fun Fact

Comparison: RD vs FD vs MF (SIP)

Famli

We are launching for beta customers soon and would love your feedback.

Quick Links

Glossary

Contact Info