When it comes to safe and steady savings, Fixed Deposits (FD) and Recurring Deposits (RD) are two of the most popular options in India. Both offer guaranteed returns and low risk, but they serve slightly different purposes. In this article, we’ll compare FD vs RD to help you decide which is better for your financial goals.
What is a Fixed Deposit (FD)?
A Fixed Deposit is a lump-sum investment made for a fixed tenure at a fixed interest rate. You invest once and receive the maturity amount (principal + interest) at the end of the term. You can calculate your returns easily using our FD Calculator.
What is a Recurring Deposit (RD)?
A Recurring Deposit is a monthly savings plan where you invest a fixed amount every month for a chosen period. The total investment and interest accumulate until maturity. Use our RD Calculator to estimate your total interest and maturity value.
FD vs RD: Key Differences
| Feature | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| Investment Type | One-time lump sum | Monthly deposits |
| Minimum Deposit | ₹5,000 (varies by bank) | ₹500 per month |
| Tenure | 7 days to 10 years | 6 months to 10 years |
| Interest Payout | Monthly, quarterly, or on maturity | On maturity only |
| Liquidity | Can be broken before maturity with penalty | Premature withdrawal allowed with penalty |
Advantages of Fixed Deposit (FD)
- - Higher interest rates compared to RD
- - Flexible tenure options
- - Ideal for one-time investments or surplus funds
- - Option for regular income through interest payouts
Advantages of Recurring Deposit (RD)
- - Ideal for salaried individuals or monthly savers
- - Encourages consistent savings habit
- - Lower entry amount required
- - Risk-free returns with guaranteed maturity
Which is Better in 2025?
If you have a lump sum amount ready to invest, go for an FD to earn higher returns. But if you want to build savings gradually every month, an RD is a smarter choice. Both offer safe and steady growth for conservative investors.
Pro Tip: Combine FD and RD for Balanced Savings
For better financial stability, consider splitting your investments between FD and RD. Use Shah Communication’s free tools like FD Calculator and RD Calculator to plan your returns in advance.
Why Choose Shah Communication?
- - Compare latest FD and RD interest rates from top banks
- - Access secure and verified investment options
- - Free online calculators for FD, RD, and SIP returns
- - Expert assistance for better savings planning
Start your savings journey today with Shah Communication — your trusted platform to compare, calculate, and invest smarter in 2025.
Disclaimer: FD and RD interest rates vary by bank and are subject to change. Please check with your bank before investing.