Question

A recurring deposit account allows the account holder to withdraw the entire deposited amount along with interest at any time before the maturity period.

Options

• True

• False

Answer 1

False

Explanation:

A Recurring Deposit (RD) is a time deposit designed for regular monthly savings over a set period for time, with the complete cumulative amount and interest only payable at maturity. While account holders can request a premature withdrawal in an emergency, doing so usually results in a penalty fee and a lower interest rate, so it is false to state that the entire amount can be taken freely at any time.