Business
Fixed Deposit (FD) and Recurring Deposit (RD) are highly favored investment options in India, particularly for those seeking low-risk investment opportunities.
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.
Recurring Deposit (RD) is a risk-free investment type where a fixed amount is deposited in a bank or NBFC every month.
If you have a modest amount to invest monthly but not a large sum, consider opting for a recurring deposit over a fixed deposit.
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.
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.