Investors must commit to a specific schedule of monthly payments for a set period. The depositor can get a lump at maturity because of the account s flexibility, minimal monthly deposits, and low maintenance requirements.
Recurring deposits (RD) popular for fixed-income investors with maturities from 1 to 10 years. SBI and Post Office offer RD with interest rates below inflation rate
RDs are best for creating short-term emergency funds. In the current high interest rate regime coupled with capital safely, RDs can be a good investment option.