RD vs FD vs SIP Calculator
Compare returns between Recurring Deposits, Fixed Deposits, and Systematic Investment Plans to make informed investment decisions
Investment Parameters
Recurring Deposit
Fixed Deposit
SIP
5 years
₹5,000
7.5%
Comparison Results
RD Maturity Value
₹3,65,000
FD Maturity Value
₹1,40,255
SIP Maturity Value
₹4,08,000
Best Investment
SIP
Growth Comparison Over Time
Detailed Comparison
| Parameter | Recurring Deposit (RD) | Fixed Deposit (FD) | Systematic Investment (SIP) |
|---|---|---|---|
| Total Investment | ₹3,00,000 | ₹1,00,000 | ₹3,00,000 |
| Interest/Return Earned | ₹65,000 | ₹40,255 | ₹1,08,000 |
| Effective Annual Return | 7.69% | 7.19% | 12.00% |
| Risk Level | Low | Low | Medium to High |
| Tax Efficiency | Medium | Low | High (LTCG) |
Understanding Different Investment Options
Recurring Deposit (RD)
- Fixed monthly deposits with guaranteed returns
- Ideal for risk-averse investors
- Interest compounded quarterly
- Low minimum investment (₹500/month)
- Fixed interest rate throughout tenure
- Premature withdrawal penalty applies
- Taxed according to income tax slab
- Best for short-term financial goals
Fixed Deposit (FD)
- Lump sum investment with fixed returns
- Low risk, capital protection
- Interest compounded quarterly
- Higher interest rates for senior citizens
- Flexible tenure options (7 days to 10 years)
- Premature withdrawal with penalty
- Interest income fully taxable
- Best for conservative investors
Systematic Investment Plan (SIP)
- Regular investments in mutual funds
- Market-linked returns (higher potential)
- Power of compounding and rupee cost averaging
- Flexible investment amounts
- Long-term wealth creation
- Tax-efficient with LTCG benefits
- Exit load may apply for early withdrawal
- Best for long-term financial goals