RD vs RD Plus

We all know about RD, But have you ever heard about RD plus? Before differentiating between RD and RD Plus, let us explain what is RD and RD Plus

Recurring Deposit(RD)– RD is nothing but setting aside some “Fixed” amount every month on a Particular date in Banks and Post Offices at a “Pre-fixed interest rate”

RD Plus– RD Plus includes setting a “Trigger”amount(Usually upto 10 Times) of the base amount; which you wish to save.

For example, if you wish to save 1000 rupees per month, you can deposit 10,000 rupees in that particular month(in 10 deposits).

Please note that Banks won’t allow to invest below the threshold limit(here-below 1000 rupees)and more than 10 times in a particular month(Here-10,000 rupees)

Which is Better- RD or RD Plus

It depends upon your discipline toward your savings and income levels.

If you have limited income and are wishing to save a fixed amount RD is suitable

If you have surplus money and wants to save further, You can choose “RD Plus“.

But don’t miss the monthly installment thinking that you have saved beyond the threshold limit in the previous month, if you miss the monthly installment, banks levy Penalty for the missed installment.

Out of the two, RD Plus fetches “More” returns than the normal RD as the interest is calculated on the amount invested per month(As RD Plus customer deposits more times in a month).

Based on your savings, You may choose RD or RD Plus. These are available in all major banks. contact your branch and avail the offer.

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