When it comes to safe investments, two popular options in India are Fixed Deposits (FDs) and Recurring Deposits (RDs). Both let you grow money securely, but the way they work — and the returns you get — are different. An FD vs RD comparison helps you decide which suits your financial goals better.
FD (Fixed Deposit): You invest a lump sum for a fixed tenure and earn interest on the entire amount. It’s ideal if you have savings ready to lock in.
RD (Recurring Deposit): You deposit a fixed amount every month, building savings step by step while earning interest. It’s best for disciplined, regular investors.
Use tools like an FD calculator or RD calculator to estimate maturity values, interest earned, and effective returns. If you’re also managing loans, pair them with a mortgage calculator, car loan calculator, or EMI calculator to balance investments with repayments.
With the right planning, both FD and RD can secure your future — it just depends on whether you prefer lump-sum investing or gradual savings.
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Compare returns from Fixed Deposit and Recurring Deposit
Fixed Deposit (FD) – You invest a lump sum for a fixed period and earn interest at a pre-decided rate.
Recurring Deposit (RD) – You deposit a fixed amount every month for a fixed tenure and earn interest on each installment.
See which option gives you higher maturity value.
Plan for goals like wedding expenses, vacations, or emergency funds.
Compare interest rates from different banks or financial institutions.
Understand tax implications on your returns.
Enter FD Amount – Lump sum for FD.
Enter RD Monthly Deposit – Fixed monthly investment for RD.
Enter Interest Rate – Annual interest for both.
Enter Tenure – Duration in months or years.
Click Compare – Get maturity value, interest earned, and total investment breakdown.
FD Formula:
M=P×(1+rn)n×tM = P \times (1 + \frac{r}{n})^{n \times t}
RD Formula:
M=P×(1+r/n)n×t−11−(1+r/n)−1/3M = P \times \frac{(1 + r/n)^{n \times t} – 1}{1 – (1 + r/n)^{-1/3}}
Where:
M = Maturity Value
P = Deposit amount (FD: lump sum, RD: monthly deposit)
r = Annual interest rate in decimal
n = Compounding frequency per year
t = Tenure in years
FD is better if you have a lump sum and want maximum compounding from day one.
RD is better if you want to save gradually and build discipline.
Returns depend on interest rates, taxes, and compounding frequency.
Yes, but most banks charge a penalty.
Both are equally safe if invested with reputable banks.
Yes, interest is taxable as per your income tax slab.
Whether you’re saving for a big purchase or building an emergency fund, the FD vs RD Comparison Tool gives you clarity to choose the most profitable option.