Fixed Deposit or Recurring Deposit: Which one you should choose?

Fixed Deposit (FD) and Recurring Deposit (RD) are highly favored investment options in India, particularly for those seeking low-risk investment opportunities.

Image credits: Freepik

Fixed Deposit

A Fixed Deposit (FD) is an investment option where both the investment period and the interest rate earned on it are fixed. The tenure ranges from 7 days to 10 years for FDs.

Image credits: Pinterest

Recurring Deposit

Recurring Deposit (RD) is a risk-free investment type where a fixed amount is deposited in a bank or NBFC every month.

Image credits: Getty

Which one you should choose?

If you have a modest amount to invest monthly but not a large sum, consider opting for a recurring deposit over a fixed deposit.

Image credits: Freepik

What happens at completion of tenure?

Monthly deposits accumulate, and the total or maturity amount is credited to your linked savings or current account at the end of the RD tenure.

Image credits: Pexels

What about fixed deposit?

If you have a lump sum to invest, choose a fixed deposit. It offers higher interest from the start due to the larger principal amount.

Image credits: Pexels
Find Next One