To Study Of Customer Satisfaction On Recurring Deposit And Fixed Deposits Provided By Banks With Respect To State Bank Of India

Abstract

Setting aside a fixed amount of money every month specifically for savings or investment is the best way for wealth maximization. If the question where to invest arises, then everybody probably recommends Recurring Deposits (RD) of banks.FD and RD are popular savings plans among retail investors. But, the question here is which of the mode of investment is better than the other? RD or FD? This question necessitates the need to compare the benefits of RD and FD to help the investors to evaluate the differences and make a prudent decision in opting for the investment solution that would best suit their interest.Thus, the primary interest of this paper is to shed light on the differences between the fixed deposit and recurring deposit, and to help people achieve their long term financial goals. This study has been conducted from SBI customers who have invested in deposit scheme, all the feedback has been collected through questionnaire.

As far as the returns are concerned, investing in a fixed deposit is more beneficial as it gives higher returns compared to recurring deposits. If the factor of concern is flexibility of making deposits, RD has an upper hand. For investing in an FD, one has to make the entire payment at one go whereas for an RD, investments can be made on monthly basis.

FD earns interest on the invested amount throughout the tenure. The second deposits earn interest from the second month of the tenure. Third investment starts making interested from the third month, and so on.