Recurring deposit is a facility that is provided by banks in order to deposit small sums of money over time that actually gets large enough later on. It is a debt relieving investment tool, hence very beneficial. The advantage of this mainly is that the interest rates are nearly 8 to 9% and the money can be added on periodically. The paperwork required is also minimal and incase of the sudden demise of the primary owner it can be easily passed on to the nominee.
Loans can be taken against these deposits and they are also not eligible for tax deductions. Any number of installments can be given in advance to it too. These are also flexible in terms of deposit as customers can then pay any amount above demarcated minimum every period. This is a very easy and reliable way of growing wealth in the bank and it is one of the safest too.