Why Investing in Recurring Deposits is a Smart Move


Investing hard-earned money is always a challenging task as the aim is to put money into a safe and reliable option that will offer good returns. For those who want a steady and secure investment option, Recurring Deposits (RDs) are an excellent choice.

Federal Bank offers its customers a range of RD options to help them grow their savings over time. In this article, we will look at why investing in Recurring Deposits is a smart choice for Federal Bank customers.

What is a Recurring Deposit?

An RD is an investment option where one invests a fixed amount of money at regular intervals for a fixed period. At the end of the term, one receives the principal amount along with the accumulated interest. Federal Bank offers RDs for various tenures ranging from 6 months to 10 years.

Advantages of Investing in Recurring Deposits

  • Guaranteed Returns: A significant advantage of investing in Recurring Deposits is that they offer guaranteed returns. Unlike other investment options, RDs have fixed interest rates, which means one knows exactly how much return they will get at the end of the term.
  • Flexible Tenure Options: Federal Bank offers flexible tenure options, starting from as little as 6 months, and going up to 10 years. This means one can choose a tenure that best suits their financial goals and needs.
  • No Market-Related Risks: Investing in the stock market or mutual funds can be risky as the returns are linked to market performance. Recurring Deposits, on the other hand, have no market-related risks. One will get a fixed return, irrespective of market conditions.
  • Regular Savings: Recurring Deposits help inculcate the habit of regular savings. By investing a fixed amount at regular intervals, one can build up savings over time and meet their financial goals.

How to Invest in Recurring Deposits

Investing in Federal Bank's Recurring Deposits is easy. One can visit a Federal Bank branch or use the bank's digital channels like FedNet or FedMobile to open a Recurring Deposit account. One can also invest in Recurring Deposits through FEDDY, the bank's virtual assistant, which is available on Alexa, Google Assistant, the corporate website and WhatsApp.


Investing in Recurring Deposits is a smart choice for those who want to grow their savings over time, without taking any market-related risks. With Federal Bank's Recurring Deposit options, one can choose a flexible tenure that suits their financial goals and needs.

So, someone looking for a safe and reliable investment option should consider investing in Recurring Deposits with Federal Bank today.

One may visit the Federal Bank website to explore the Recurring Deposit options available and start their investment journey with FEDDY, the bank's virtual assistant.