FD vs RD: Which Is Better for Your Savings?

Both a Fixed Deposit (FD) and a Recurring Deposit (RD) are safe, popular ways to grow savings in India. The right one depends on whether you have a lump sum now or want to save monthly.

Fixed Deposit (FD)

You deposit a lump sum once and it earns a fixed interest rate for a chosen tenure. Best when you already have money set aside and won't need it for a while.

Recurring Deposit (RD)

You deposit a fixed amount every month for a set period. Best for building a habit of saving from your monthly income — like a disciplined piggy bank that earns interest.

Which earns more?

For the same total amount and rate, an FD usually earns slightly more because the full sum earns interest from day one, whereas in an RD each installment earns interest for less time. But an RD is easier if you can't invest a lump sum upfront.

Compare them yourself

Use the FD Calculator and the RD Calculator to see the maturity value of each. Investing in mutual funds instead? Try the SIP Calculator.