Safe
investment - Recurring
deposits carry no risk or very little at all. Choose a stable and secure bank
to ensure that your money is safe. Recurring deposits are just a simple
investment of your money and do not dabble in the markets. Therefore the
interest rate will not fluctuate and you do not stand to lose any money.
Earn
while you save - Your
deposit will earn interest from your first contribution. The interest
accumulated will increase through your tenure. The longer you invest, the more
interest you will earn.
Lump
sum payout - At
the end of the RD tenure, you will receive a lump sum of cash. This amount
includes your contribution plus the interest earned. You can use the money to
reinvest it or spend it on what you were saving for.
Online
access - Most
banks offer Internet Banking services which you can use to open deposits,
access your accounts and see the progress of your deposit. You can also view
the different interest rates offered. You can pick the tenure and deposit
amount suitable to you and also earn the highest interest offered.
Loan
offers - When
you have an RD with a bank, you sometimes get pre-approved loan offers. In
other cases, your loan applications will be given preference and your
processing might be faster. In addition to this, banks offer concessional
interest rates on loans as well.