What Is Recurring Deposit (RD)? Author: @nkit A Recurring Deposit (RD) is a simple savings plan offered by banks and financial institutions that lets you save money regularly and earn interest on it. If you want to save small amounts every month and earn guaranteed returns, RD is one of the easiest options to start with. In this guide, you’ll learn what an RD is, how it works, its benefits, risks, and how to open one in India. How Does a Recurring Deposit Work? With an RD, you deposit a fixed amount every month into your RD account. Each instalment earns interest at the agreed rate, and when the RD matures, you get the total amount you deposited plus interest. The interest rate on RDs is usually higher than a regular savings account but lower than long-term fixed deposits. The bank calculates interest monthly or quarterly depending on the terms. Example of a Recurring Deposit Suppose you open an RD by depositing ₹2,000 every month for 3 y...