What is better than recurring deposit?

Recurring Deposit is liquid but premature withdrawal or closure will attract penalty charges. In terms of liquidity, a SIP is better when compared to RD. SIP can be closed and the money can be withdrawn without any penal charges. Recurring Deposit amount or the interest earned on it are not exempted from tax.

What is the average returns in chit funds?

Withdraw the chit amount in its entirety when you have the need for that money, anytime during that tenure. No loans, no repayment liabilities. All Registered Chit funds are known to earn about 8 – 9\% returns year on year, as per industry statistics.

Which is better chit or RD?

There are Government-run and registered chit funds that are safe to invest in. On the other hand, recurring deposit are a much safer investment….Comparison Between RD and Chit Fund.

Particulars	Recurring Deposit	Chit Fund
Interest rate	Higher rate of interest	Relatively lower rate of interest

What is the benefit of recurring deposit?

Designed to save any amount over a period of time, RDs are an advanced version of the fixed deposit. This is because a recurring deposit understands that you may not be able to save all the money in one go. So, it allows you to save bit by bit, and get interest for the outstanding balance.

What is the advantage of recurring deposit?

How much should I invest in recurring deposit?

Features of Recurring Deposit

RD Features	Applicability
Rate of interest	Between 5\% to 8\% (variable from one bank to another)
Amount of minimum deposit	From Rs. 10
Tenure of investment	Between 6 months and 10 years
Frequency of interest calculation	Usually every quarter