Full form of RD is Recurring Deposit

A recurring deposit is a risk-free savings method that allows the investor/depositor to deposit equal installments of money every month (or quarterly) in a bank account for a fixed period (in days, months, or years) at a guaranteed interest rate. The financial institutions credit the interest earned on the principal amount on a quarterly or half-yearly basis. RDs also provide investors the flexibility to either re-invest or withdraw the credited interest. Re-investing the generated interest is recommended to take advantage of growth compounding.

A depositor can also break their recurring deposits before their maturity date for a nominal charge/fee. RDs are not eligible for tax-saving.