Banking & savings
Recurring deposit
Also known as: RD
A deposit where you put in a fixed amount every month and earn FD-like interest on it.
An RD is like an FD you build monthly. You commit a fixed sum each month for a set tenure at a fixed rate.
It suits people who want to save regularly from their salary without a big lump sum upfront.
Returns and taxation are similar to an FD, so it is safe but not a high-growth option.
For example
Putting ₹5,000/month into a 3-year RD at 7% steadily builds a corpus, ideal for a planned goal like a trip or gadget.