Question

A term deposit in which the investor has to deposit money in short intervals, for a long time.

• A. Fixed Deposit
• B. Savings Account
• C. Recurring Deposit
• D. Current Account

Answer 1

Answer:

C. Recurring Deposit

Recurring or Cumulative Deposit:

• To encourage the habit of thrift and savings among people

• A depositor deposits a small fixed sum in the multiples of 5 or 10 in his account every month particular period. 

• The depositor gets the pre-determined sum after the period of deposits with sum invested and cumulative interest. 

• The amount of interest is adjusted quaterly 

• Recurring Deposit is a Term deposit in which investor has to deposit money in short intervals for long time 

• The tenure of Recurring between 6 months to 10 years. 

• Same amount of repeated investment at fixed intervals