Investment: Half of India does not know these 8 most amazing things about investing in RD..

RD is considered a safe investment option for everyone, but before investing in RD, it is most important for investors to understand all its aspects. RD investment done with correct understanding and caution can prove to be helpful in providing financial security in the future. So let's know 8 money-making things about RD investment.

8 important things about RD investment

There are many investment options available in today's time, but RD (Recurring Deposit) has always been a very famous and reliable option for Indian families. It is the best for those who earn a fixed monthly income and want to save a small amount every month. RD not only disciplines the investment, but it also gives good returns while keeping your money safe. So without delay, let's know what are the 8 biggest benefits of investing in RD.

1. Promotes disciplined savings
The special thing is that the biggest advantage of RD is that it makes it necessary to deposit a fixed amount every month. It is very helpful for those who have difficulty saving. It helps you to develop a disciplined financial habit.

2. Guaranteed returns
Whenever investors invest in RD, they are guaranteed returns on maturity. It is free from the risks of the stock market, so you do not have to worry that your money will be lost.

3. Flexibility in investment
You can easily start RD with a small amount like ₹ 100 according to your income and saving capacity. You can easily invest for a period of 6 months to 10 years.

4. Benefit of compounding
The most important and special thing is that the magic of compounding (compound interest) works in RD as well. Yes, in this, you also get interest on interest, due to which your fund grows rapidly over time.

5. Easy and safe
It is very easy for everyone to open an account in RD. Anyone can easily open it in any bank or post office. RD is backed by the government, so your money is completely safe.

6. Loan facility

In an emergency, when you need money, you can also take a loan on your RD. The bank can give a loan of up to 80-90% of your RD deposit amount. The interest rate on this is much lower than a personal loan, and you do not need to break your RD.

7. Tax exemption (in some cases)

Yes, if you want to save tax, then you can opt for some special tax-saving FD schemes along with RD, which provides tax exemption under section 80C. However, this benefit is not available in normal RD, but TDS is deducted on the interest earned on it.

8. Easy withdrawal

Although it is advisable to continue RD till maturity, if needed, you can also close it before its time. However, you may have to pay a small penalty for doing so.

RD is the best

Recurring deposit (RD) is an investment option that provides both financial discipline and safety. It is a very effective tool to convert small monthly savings into a large fund. It is especially for those who do not want to take risk and want to achieve their financial goals in a safe manner.

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