I hope all of you have read my article “Types of Banks Accounts” published few days ago, Continue with that let me give some details about the RD Account. It is one of the safe and secure money-saving option. Details are:
- RD stands for Recurring Deposit Account
- Where to Open: Commercial or Cooperative Bank or Post Office [Note: One Person can have multiple RD Accounts in same Bank].
- Mode of Investment: A specific amount is invested on a monthly basis for a fixed term.
- Term: Minimum 6 months to Maximum 10 Years.
- Minimum Monthly Deposit: Rs. 100 to No upper limit for investment.
- Interest Rate: Between 7% to 11% depends on Maturity period.
- Loan Facility: Available
- Account Closure: Account can be closed before completing the original term and interest will be paid to the rate application on the date deposit is closed.
- Tax Benefit: Available and TDS is not applicable on Recurring Deposits.
Hope these details are helpful to you. Visit your nearest Bank or Post Office Open a RD Account and Start Saving the Money!!!!!!!!.