So , the point is how do you make both short term and long term safe investments with your hard earned money? Well, in case you are looking for a secure as well as promising investment option with banks, you must consider Recurring Deposits or Rds. Of course, if you don’t know much about how it works and what interest you may gain after a certain period, you can consider using a Rd calculator too.
You need to know that rds are quite simple and even straightforward and one of the perfect choice for short-term investments. Recurring deposits are the type of Deposit schemes wherein you deposits a set amount every single month over a predefined duration and this mostly differs from one year to even five years.
Here, the main attraction being, you do not require to invest a massive amount all at once. Remember, a portion of your monthly salary may easily get saved by investing in this scheme. Generally , a great interest is calculated on a three-monthly compounding basis for Rds. If you are looking forward to know about a few of the benefits of this concept, here are a few:
A smart short-term investment
In case you look forward to accumulate a specific amount of money for the vacation you are planning for your year-end or other crucial needs of your life, RD is going to be the perfect option. It is moderately risk-free besides promised returns.
Easy working
The overall process of opening, operating and even closing an RD is somewhat simple. You can also open multiple RD. With most banks get you a gamut of attractive packages, the options for you are also widespread.
Trouble-free Access and working
Just think about making an investment as well as earning interest in the absence of even having to leave your home. Remember that investing in a Recurring Deposit is as simple as this. In the present times the procedures are made efficient and available online so you can dodge visiting your bank personally. Being a customer , you can deposit money in Recurring Deposit account, close your RD account, open another RD, update overall information, view transactions, even deposit details and so much more on the internet. The point is you can control your RD operations conveniently from your home.
High Interests Rates
Well, Recurring Deposit or RD interest rates depend on the overall tenure and deposit amount. Similar to somewhat fixed deposits, interest rates for RD differ from 7.25% to even more depending on the bank and the plan you choose. Of course, in some banks, the interest rate can be below 6 too. So, you need to do the proper evaluation before making a choice. And using a Rd calculator will come really handy in such times.
Conclusion
So, if you still are not really getting the clue about what RD is and how is it going to work for you then you can further reach out to platforms like 5paisa and clear your doubts.