RD vs FD Calculator
Compare returns between Recurring Deposits (RD) and Fixed Deposits (FD) to make informed investment decisions
Investment Parameters
Recurring Deposit
Fixed Deposit
₹5,000
7.5%
36 months (3 years)
₹1,00,000
7.0%
3 years
Comparison Results
RD Maturity Value
₹2,01,750
FD Maturity Value
₹1,22,925
Better Investment
RD
Growth Comparison
Detailed Comparison
| Parameter | Recurring Deposit (RD) | Fixed Deposit (FD) |
|---|---|---|
| Total Investment | ₹1,80,000 | ₹1,00,000 |
| Interest Earned | ₹21,750 | ₹22,925 |
| Effective Annual Return | 7.69% | 7.19% |
| Monthly Investment | ₹5,000 | Lump Sum |
| Flexibility | High (monthly deposits) | Low (lump sum required) |
Understanding RD vs FD
Recurring Deposit (RD)
- Regular monthly deposits instead of lump-sum investment
- Ideal for salaried individuals with fixed monthly savings
- Lower minimum investment requirements (as low as ₹500/month)
- Flexibility in choosing monthly deposit amount
- Interest compounded quarterly
- Tenure typically ranges from 6 months to 10 years
- Premature withdrawal allowed with penalty
- Better for disciplined long-term savings
Fixed Deposit (FD)
- Requires a lump-sum investment at the beginning
- Ideal for those with existing capital to invest
- Higher minimum investment requirements (usually ₹5,000+)
- Fixed amount locked in for the entire tenure
- Interest compounded quarterly, half-yearly, or annually
- Tenure ranges from 7 days to 10 years
- Premature withdrawal penalties vary by bank
- Better for parking lump sum amounts
Which to Choose?
- Choose RD if you want to save small amounts regularly
- Choose FD if you have a lump-sum amount to invest
- RD helps cultivate a savings habit with discipline
- FD provides slightly higher interest rates for larger amounts
- Both are safe investment options with guaranteed returns
- RD is better for long-term wealth accumulation
- FD is better for short to medium-term goals