Banking
RD
pronounced: [R-D]
Recurring Deposit is a savings instrument requiring fixed monthly deposits over a specified tenure, earning a predetermined interest rate.
It is suitable for building a corpus through regular savings.
Key Facts
| Fact | Value |
|---|---|
| Interest Compounding | Monthly |
Example
A monthly RD of ₹5,000 at 7% p.a. for 3 years accumulates to ₹1,95,660. You contributed ₹1,80,000, so interest earned = ₹15,660.
Frequently Asked Questions
Last updated: 21 May 2026