Recurring Deposit for Vacation Planning

07^th Oct 2025...

Everyone looks forward to a vacation. And why wouldn’t they? It’s the perfect break from the daily hustle, giving yourself the time to recharge, spend time with your loved ones and generate new experiences and memories that can power a lifetime. But you need more than a will or desire to go when it comes to a vacation - you need funds.

For many Indians, travel has become an increased priority. Long weekends are utilized for domestic travel, while longer ones are used to explore the rest of the world. From booking accommodations, transportation charges, food and leisure activities and more, a vacation can become a burden on the pocket if not planned well. One of the easiest ways to generate the required funds needed for a vacation is to set a portion of money aside each month. But consciously doing this becomes a challenge. That is why a recurring deposit is a great service for vacation planning.

What is a Recurring Deposit?

A Recurring Deposit scheme or RD as it is commonly known, is a low-risk investment tool, offered by most banks in the country. It is a highly popular option for many because of two reasons:

Flexible investment amount
Flexible tenure

These two options make it the perfect savings companion when it comes to planning a vacation. You can choose any amount you are comfortable with and set it aside every month. The tenure for recurring deposits can be between six months to ten years, making it an ideal period for generating the corpus needed for an all-inclusive holiday, domestic or international. In addition to this, you will also benefit from Recurring Deposit interest rates, which you can calculate using the Recurring Deposit online calculator. By calculating your Recurring Deposit interest, you can get a better idea of how much you need to deposit each month for your vacation. To get started, follow these steps:

Open our Recurring Deposit maturity calculator online
Choose the type of customer applicable
Input the amount you wish to deposit each month
Select the number of months you wish to maintain the RD

The calculator will compute this data and show the maturity value and date within seconds.

How does a Recurring Deposit work in vacation planning?

You can consider using an RD in a number of ways when it comes to planning a vacation:

Planned from the start:

When you have a plan for your vacation from the start, your plan has a definite start and end date. Depending on the location and scale of the holiday planned, you can use the Kotak811 Recurring Deposit calculator and set up the plan of investment. The ideal time to begin is a year prior to the holiday, so you can set up a sizable corpus. And with the interest rate offered on the RD, you can get a little extra funds to do more.

Set up vacation savings:

Another way to use your Recurring Deposit effectively for vacation planning is to not rely on a particular plan to get started. Make it a habit to put aside some part of your income into a number of short-term deposits. For example, set up a recurring deposit for 6 months. You can reinvest the amount gained back into another 6-month RD if you don’t have a holiday planned upon maturing of the RD. With this, you will always have a corpus to draw from whenever the mood for a vacation strikes you. This kind of planning is best for impulse holidays or short-term vacations, like the ones taken for long weekends.