What is a Recurring Deposit?A recurring deposit is a savings plan that allows individuals to make regular monthly deposits over a fixed period. These deposits earn interest, and at the end of the term, you receive the total amount along with the interest. It's ideal for those who earn a regular income and want to save steadily. For parents, it’s a great deposit scheme to put money aside for their children's future while also teaching them the value of saving.Further, RDs are also useful for anyone who wants to build savings for future expenses—whether it’s for education, retirement, or a
rainy day fund.Teaching kids how to save is an important life lesson. A Recurring Deposit (RD) is one of the simplest and safest ways to start. While it’s an excellent tool for helping children learn about saving, recurring deposits are not just for kids. They’re designed for anyone with a regular income who wants to build disciplined saving habits. Whether you’re saving for your child’s future or working towards your own financial goals, an RD can provide the steady growth you need. In this blog, we’ll explain the benefits of a recurring deposit, how it supports financial literacy at an early age, and how Saral Banking Sewa can help you calculate your returns.Benefits of a Recurring DepositHere are the key advantages of a recurring deposit, whether you’re saving for yourself or your child:Builds Good Saving Habits: Regular deposits help you develop a consistent saving routine.Guaranteed Returns: The fixed interest rate ensures that your savings will grow steadily.Low Risk: RDs are one of the safest and most reliable ways to save, with no risk of losing your principal.Flexible Options: You can choose how much to deposit and for how long, depending on your goals.To see how your savings can grow, try our Recurring Deposit Calculator.Financial Literacy at an Early AgeEncouraging children to save early helps them understand how to manage money responsibly. By contributing a small amount to an RD, children learn the importance of saving regularly, a habit that will benefit them throughout their lives. Parents can use this as a tool to save for their child’s education or other future needs.A Broader Perspective: The Best Investment for Regular SaversWe have now learnt that a recurring deposit is beneficial to people at all the stages of life A recurring deposit is not only for children—it’s perfect for anyone with regular income. For adults, it offers a structured way to put money aside each month, making it easier to plan for major future expenses. Similarly, it is beneficial for saving for children’s future expenses, such as education, by offering a way to gradually build a secure fund. Here’s why an RD is a great choice:Regular Monthly Deposits: RDs require fixed monthly contributions, making them easy to manage, even with a tight budget.Safe and Secure: Unlike other investments, an RD offers guaranteed returns, making it ideal for conservative savers.Interest Grows Your Savings: The interest accumulates over time, helping you grow your savings without much effort.This makes an RD particularly beneficial for saving for children’s future expenses, such as education, by offering a way to gradually build a secure fund.Recurring Deposit Interest RatesThe interest rates on RDs vary between banks in Nepal. To make sure you’re getting the best return on your investment, use our Compare Deposits feature to compare rates and find the best options for your savings goals.How to Use the Saral Banking Sewa RD CalculatorOur Recurring Deposit Calculator makes it easy to calculate the returns on your RD:Enter the deposit amount: How much will you save each month?Select the tenure: Choose the length of time you want to save (months or years).Interest Rate: Input the interest rate offered by your bank. If you’re unsure, check our listing page.Compounding Frequency: Choose how often the interest should be added to your savings (monthly, quarterly, etc.).Calculate: Click ‘Calculate,’ and you’ll see the results instantly!Start planning your savings with our RD Calculator today.ConclusionA recurring deposit is a smart, low-risk way to save for the future, whether it’s for yourself or your child. Siddhartha Bank offers one of the most competitive RD schemes in Nepal, designed to help you make the most of your savings. Check out Siddhartha Bank’s RD Scheme Details to learn more about their offerings.Ready to start saving? Visit our Recurring Deposit Comparison Page to find the best RD plan for your needs. With Saral Banking Sewa’s tools, you can easily plan and secure your financial future with guaranteed returns.
