Fixed Deposit (FD) vs. Recurring Deposit (RD)
Fixed Deposits (FD) and Recurring Deposits (RD) are popular low-risk investment options offered by banks. While they both offer guaranteed returns, the way you invest in them differs.
Fixed Deposit (FD)
In an FD, you invest a lump sum of money for a fixed period at a pre-determined interest rate. FDs are ideal for people who have extra cash and want to earn a higher interest rate than a regular savings account without any market risk.
Recurring Deposit (RD)
An RD allows you to invest a fixed amount every month for a specific tenure. This is perfect for individuals with a regular income who want to build a savings habit but don't have a large amount to invest upfront.
Calculating Returns
The interest on FDs and RDs is usually compounded quarterly. Our calculator takes into account the compounding frequency and provides an accurate estimate of the maturity amount you will receive at the end of the tenure.
Using an FD/RD calculator helps you compare different schemes and choose the one that aligns with your financial goals. Whether you are planning for a vacation, a new gadget, or just building an emergency fund, these tools give you the clarity you need to save effectively.