What is Recurring Deposit
Sharmaji :Good Morning Vinodji. I need your guidance again. I am not able to save up enough.
Vinodji : Why? What happened?
Sharmaji : I hardly have any surplus available.
Vinodji :Why don’t you open a Recurring Deposit?
Sharmaji : Recurring Deposit? What is that?
Vinodji :Recurring Deposit is a deposit product that allows you to save small sum of money every month or quarter and gives you attractive and assured returns.
Sharmaji : Oh! Is that so?
Vinodji : Yes, Recurring Deposit also give you the benefit of compounding.
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Vinodji : By investing a minimum Rs. 500 each month, at 9.50% interest rate, you would have saved Rs 38,323 at the end of 5 years.
And if you wish to invest more, let us say, Rs. 1000 each month, at 9.50% interest rate, you would have saved Rs 1,98,553 at the end of 10 years.
Vinodji :Recurring deposits are ideal to achieve your long-term goals such as Children’s Education, Wedding expenses, Retirement planning, Saving up for a vacation, etc.
Sharmaji : Thank you Vinodji. Recurring Deposits are indeed one of the simplest investment option available with several benefits. I shall open a Recurring Deposit right away.
Vinodji : Go Ahead.