What is a recurring deposit account? Explain.

1.	What is a recurring deposit account? Explain.
Answer» Recurring deposit account: A recurring deposit account is opened when one wishes to save some money, deposit it regularly in this account and earn an interest at the end of the account term. One needs to compulsorily deposit a predetermined amount every month in this account for a pre-determined period. The bank returns the entire amount along with interest to the account holder at the end of the account term. The rate of interest is higher than the savings account and lower or almost near to the interest on fixed deposit accounts.

Answer»

Recurring deposit account:

A recurring deposit account is opened when one wishes to save some money, deposit it regularly in this account and earn an interest at the end of the account term.
One needs to compulsorily deposit a predetermined amount every month in this account for a pre-determined period. The bank returns the entire amount along with interest to the account holder at the end of the account term.
The rate of interest is higher than the savings account and lower or almost near to the interest on fixed deposit accounts.

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