A recurring deposit is a special type of deposit that allows the users to save a fixed amount of money at regular interval of time.
Generally, this scheme is offered by both bank and post office where people can contribute to saving a small part of their amount to build a fund.
This is a great investment option for salaried people and the time span of recurring deposit can be in between 6 months to 10 years. You do not need to arrange huge money in order to start with a recurring deposit; you can start the account with as low as low 10 rupees.
In this article, you will get to know about some of the hidden facts about the recurring deposit.
Help In Planning Short-Term Goals
Investment on recurring deposit will ensure you guaranteed a return in future and at the same time, there is no risk involved with it. So there is no need to compromise on your short-term goals, in other words, the recurring deposit is the best way to tackle short-term goals.
Unlike other schemes where one need to invest in bulk to start with the scheme, in the recurring deposit you can invest as low as 10 to start with it. You can set aside a particular amount of your salary to be invested every month.
Flexible Recurring Deposit
In this recurring deposit scheme, you can withdraw the amount you have invested at any time you want. One does not need to satisfy any criteria or norms to withdraw the money, you can seek for it any time.
No Tax Deduction At Source
You will not be charged with TDS, it is not applicable to the interest amount earned by recurring deposit according to current incomes tax rules.
If you wish to avail loan, you can do so against the collateral of the recurring deposit. The loan can be availed up to 80-90% of the value deposited.Older Articles New Articles