Question

Define or explain the following concepts.
Recurring Deposits.

Answer 1

Recurring deposit account refers to the type of bank account where a fixed sum of money is deposited in the bank in monthly installment regularly for a fixed period of time. The rate of interest is quite high in recurring deposit account. Withdrawals are not permitted until the expiry of the fixed period and on the expiry of the fixed period, the total sum of money deposited in the bank account is paid to the depositor along with the accrued interest.