| Total Investment | Interest | Total Amount |
|---|---|---|
| ₹ 12,000 | ₹ 0 | ₹ 1,000 |
A recurring deposit (RD) is a type of savings account offered by banks and financial institutions that allows you to deposit a fixed amount of money at regular intervals, usually monthly, for a predetermined period of time. The interest rate on an RD is generally higher than that offered on a regular savings account, making it an attractive investment option for those looking to save money.
A recurring deposit is a type of savings account offered by banks and financial institutions that allows you to deposit a fixed amount of money at regular intervals, usually monthly, for a predetermined period of time.
The minimum deposit amount for an RD varies from bank to bank, but is generally around ₹ 1000.
The interest rate on an RD is fixed at the time of opening the account and remains the same throughout the tenure. The interest rate offered by banks varies based on the tenure of the RD.
Yes, most banks allow premature withdrawal of the RD, but with a penalty fee. The penalty fee varies based on the bank and the tenure of the RD.
Yes, the interest earned on an RD is taxable under the Income Tax Act, and is subject to TDS (Tax Deducted at Source) if the interest earned exceeds ₹ 10,000 in a financial year.