Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits. It is similar to making FDs of a certain amount in monthly installments, for example Rs 1000 every month. This deposit matures on a specific date in the future along with all the deposits made every month. Thus, Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time.Minimum Period of RD is 6 months and maximum is 10 years.
A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. Term deposits in India is used to denote a larger class of investments with varying levels of liquidity. The defining criteria for a fixed deposit is that the money cannot be withdrawn from the FD as compared to a recurring deposit or a demand deposit before maturity. Some banks may offer additional services to FD holders such as loans against FD certificates at competitive interest rates. It's important to note that banks may offer lesser interest rates under uncertain economic conditions. The interest rate varies between 4 and 11 percent.
Monthly Income Scheme (MIS) is an investment scheme of Indian postal service. It promises the investor guaranteed returns at 8.5% per annum in the form of fixed monthly income. Seasoned investors consider MIS to be one of the smartest options to park funds as it gives you three merits – keeps your capital intact, yields better returns than debt instruments and assures a fixed monthly income. The money can be withdrawn in two ways, either directly from post office or get it credited in your savings account through ECS. The money is usually meant to be withdrawn on a monthly basis. However, the investor can let it to accumulate over a few months and then withdraw it but it’s not of much use as the idle money will not earn you any interest.
Our Savings Account gives you the advantages of competitive interest rates and the availability of your funds, without forfeiture of interest in case of withdrawal. The account may be owned by an individual, organization or association.