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The Rohika Central Co-Operative Bank Is A Co-Operative Institution Situated In Madhubani Bihar Established In 1909.
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Recurring Deposit
Recurring Deposit
A Recurring Deposit (RD) is a type of term deposit offered by banks and financial institutions that allows individuals to save a fixed amount of money regularly over a predefined period.
It is a popular savings option for individuals who want to build a corpus over time by making regular contributions.
Here's how a Recurring Deposit typically works:
Deposit Frequency:
The account holder chooses a fixed amount of money to deposit regularly (monthly) into the RD account. This amount is decided at the time of opening the account.
Deposit Tenure
The RD account has a fixed tenure, which is also determined at the time of opening. The tenure can range from a few months to a few years, depending on the bank's policies.
Interest Rate
The RD earns interest at a fixed rate, which is generally similar to that offered on fixed deposit accounts. The interest rate is determined by the bank and remains constant throughout the RD tenure.
Maturity Amount
As the account holder keeps making regular deposits, the RD account balance keeps increasing. At the end of the tenure, the account holder receives the maturity amount, which is the total sum of all the deposits made along with the interest earned.
Penalty for Missed Deposits
If the account holder misses making a monthly deposit, the bank may impose a penalty, and the interest earned for that particular month may be reduced.
Premature Closure:
In some cases, premature closure of the RD account is allowed, but it may attract a lower interest rate and certain penalties, as per the bank's policy.
