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ICSE / ISC eBooks

Recurring Deposites

To save a certain sum of money an indivisual is allowed to open an account of recurring deposited in any bank. The amount is deposited monthly in a multiple of 10 for a period of 3 months to 10 years. The depositer has to deposit the monthly instalment on or before due date to get maximum benefit of the interest.

At the expiry of the period i.e. the maturity period, the depositer is paid the total amount deposited by him and the interest. These two types of amount is called maturity value. The rate of interest is fixed by Reserve bank and is revised from time to time.