What are the Different Types of RD Accounts?

What are the Different Types of RD Accounts?


Recurring Deposits (RDs) are one of the most popular savings options for individuals who prefer disciplined monthly saving with guaranteed returns. Unlike lump-sum deposits, RDs allow you to invest a fixed amount every month for a chosen tenure, making them ideal for short-term and long-term goals. But did you know there are different types of recurring deposit accounts designed to suit varied financial needs?

In this blog, we’ll explore the concept of recurring deposit accounts , understand what a recurring deposit scheme is, and dive into the unique RDs type offered by Federal Bank, including innovative plans like Federal Savings Fund , Millionaire Federal Savings Fund , Crorepati Federal Savings Fund , and Multi Millionaire Federal Savings Fund .

What is a Recurring Deposit Account?

A recurring deposit account is a savings product where you deposit a fixed amount every month for a predetermined tenure. At maturity, you receive the total amount along with interest. It’s a simple way to build a corpus gradually without straining your budget.

  • Fixed monthly contribution
  • Guaranteed returns
  • Flexible tenure options
  • Low-risk investment

Why Choose a Recurring Deposit Scheme?

A recurring deposit scheme helps you:

  • Develop a disciplined saving habit
  • Align savings with financial goals
  • Earn interest similar to fixed deposits
  • Avoid market volatility risks

Types of Recurring Deposit Accounts

Banks offer various RD schemes to cater to different customer needs. Here are the common types of recurring deposit accounts :

  • Standard RD Account: Deposit a fixed amount monthly for a chosen tenure (6 months to 10 years). Ideal for short-term goals like travel or gadgets.
  • Flexible RD Account: Allows variable monthly deposits within a range. Perfect for those with fluctuating income.
  • Goal-Based RD Schemes: Designed for specific milestones like education, marriage, or wealth creation. Federal Bank offers unique goal-based RDs under its Federal Savings Fund series.

Federal Bank’s Unique RD Schemes

Federal Bank goes beyond traditional RDs with innovative plans that help you achieve big dreams systematically:

  • Federal Savings Fund: A simple RD scheme for regular savers. Contribute monthly and build a secure corpus for short-term needs.
  • Millionaire Federal Savings Fund: Dreaming of becoming a millionaire? This plan calculates the monthly deposit required to reach ₹10 lakh at maturity. Ideal for medium-term wealth goals.
  • Crorepati Federal Savings Fund: For ambitious savers aiming for ₹1 crore. The scheme helps you plan monthly contributions over a longer tenure to achieve this milestone.
  • Multi Millionaire Federal Savings Fund: Designed for high-value goals, this RD type supports creating a multi-crore corpus through disciplined saving.

 

Each scheme offers:

  • Fixed monthly installment
  • Attractive interest rates
  • Flexible tenure options
  • Guaranteed maturity amount

How to Choose the Right RD Type

Consider:

  • Your financial goal (short-term vs long-term)
  • Monthly affordability
  • Desired maturity amount
  • Tenure flexibility

Final Thoughts

Recurring deposits are a smart way to save systematically. Whether you choose a standard RD or a goal-based scheme like Millionaire Federal Savings Fund or Crorepati Federal Savings Fund , the key is consistency. Explore Federal Bank’s innovative RD options and start your journey toward financial freedom today.

Learn More: How to Set Financial Goals, and How RDs Can Help Achieve Them?