Question

Briefly explain the concept of Recurring Accounts.

Answer 1

1:Recurring deposit account is generally opened for a purpose to be served at a future date. Generally opened to finance pre-planned future purposes like, wedding expenses of daughter, purchase of costly items like land, luxury car, refrigerator or air conditioner, etc.
2:Recurring deposit account is opened by those who want to save regularly for a certain period of time and earn a higher interest rate.
3:In recurring deposit account certain fixed amount is accepted every month for a specified period and the total amount is repaid with interest at the end of the particular fixed period.