Are you thinking of doing investment in Recurring deposits? Do you want to earn decent returns on your investment? A Recurring deposit is an investment tool that allows people to earn decent returns on their investments and make regular deposits. It often provides flexibility. It seems to be more flexible than a fixed deposit account. It is available for senior citizens well and the interest rates are quite higher. Here are some of the important advantages and benefits that you get from investing in Recurring deposits.
An attractive interest rate is the main benefit of a recurring deposit account. For example, IDFC FIRST BANK increased 6.25% to 7.25% for a recurring deposit account which is considered a higher interest rate. At the maturity of the deposit with quarterly compounding, a payout will be made. It is available for senior citizens in most banks.
No penalty for missing a month
Days are gone when savers were forced to pay a monetary fine for missing recurring deposits for some unavoidable reason. IDFC FIRST BANK is so customer friendly that no penalty is there. But certain conditions are there that is if there are premature withdrawals of money before 30 days no interest is payable and if it is after 30 days the interest rate will be the fixed deposit card rate available for 30-45 days.
The minimum amount is 2000 per month
There is a misconception that you have to start with a lot of money saved in a recurring deposit account. One of the key advantages is that you can start with 2000 per month. The maximum monthly installment is 75k.
Save for as low as 6 months
The commitment period is much lower usually for 6 months and IDFC FIRST BANK provides this benefit.
Simple documents are required for opening a recurring deposit account. After the opening of the saving account, no further documentation is required.
Save bit by bit
The best part of this account is that you don’t have to invest all your money at a time likewise in a fixed deposit. It allows you to save small amounts regularly and earn the same attractive interest rate.
The best part of this account is that it is available for a short-term goal which usually has 1-3 years to achieve. It is a good investment avenue for risk-taking investors who are interested to invest money every month. So everyone should invest in this recurring deposit account.