📖 Understanding Recurring Deposits

Recurring Deposit (RD) is a systematic savings scheme where you deposit a fixed amount every month and earn interest at a fixed rate. It's perfect for salaried individuals who want to build savings through monthly contributions.

RD interest rates are similar to FD rates, ranging from 3% to 8% in most Indian banks. The minimum monthly deposit can be as low as ₹100, making it accessible to everyone.

Unlike FD where interest is calculated on the lump sum, RD interest is calculated quarterly but applied on monthly deposits. The first deposit earns interest for the full tenure, while later deposits earn proportionally less.

RDs are great for short to medium-term goals like buying gadgets, vacation planning, or emergency fund building. No TDS is deducted on RD interest.