India, April 2 -- A Recurring Deposit (RD) is often a reliable long-term investment for risk-averse investors. Every month an investor deposits a fixed sum, which may accrue interest on the amount invested. Choosing the right RD for your needs is quite a nuanced decision, as many factors tend to influence the returns on the investments. A clear understanding of factors like the RD interest rate, deposit amounts, penalties for early withdrawals and the financial institution's credibility may help with choosing the right RD. In this article, we will understand how one can choose the right RD by discussing some important factors to consider.

The following is a breakdown of each factor in detail that may help you choose the right RD for your...