Recurring Deposit Account
A recurring deposit account is a very reliable investment option. A recurring deposit account is opened in a bank, a non-banking financial company (NBFC) or a post office. Once opened, the account holder is expected to deposit a certain amount of money every month for a fixed period which ranges from six months to ten years. The amount of money deposited depends upon the account holder and is pre-determined at the beginning of the tenure. Once money starts accumulating, the interest is compounded quarterly. When the tenure of the deposit ends, the account holder receives a lump sum amount that includes the principal amount and the interest. This investment scheme is a good choice for people who do not have a large amount of money to deposit but want to save a small amount every month without draining their pockets.