What is a Recurring Deposit Account?

Recurring Deposit Account refers to a savings plan in which the account holder is required to deposit a specific amount every month. After the expiry of the specified period, the depositor gets back his money together with interest thereon. The number of monthly instalments may vary from 12 to 72. A pass book is issued to the depositor but no cheque book is issued. The main objective of this account is to encourage regular saving habits.