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FD vs RD — lump sum or monthly deposits?

A Fixed Deposit wants your money upfront in one lump sum. A Recurring Deposit lets you build it up monthly at a fixed rate. Compare the two on a realistic monthly savings capacity.

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FD Calculator vs RD Calculator5-year comparison

Opens Compare Lab pre-loaded with both, in your own currency — adjust any input and the chart updates instantly.

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How each one actually works
Fixed Deposit (FD)

A lump sum deposited with a bank for a fixed tenure at a fixed, guaranteed interest rate.

PROS
Fully guaranteed return — no market risk
Predictable maturity value known upfront
Widely available and simple to open
CONS
Interest is fully taxable at your slab rate every year it accrues
Return is capped — no upside beyond the fixed rate
Early withdrawal usually triggers a penalty

Best for: Capital you can't afford to risk — an emergency fund, or a short-term goal within a couple of years.

Recurring Deposit (RD)

A fixed amount deposited with a bank every month for a fixed tenure, at a fixed interest rate.

PROS
Builds a savings habit through a fixed monthly commitment
Guaranteed return, same safety profile as FD
Lower entry amount than a typical FD
CONS
Interest is taxable at your slab rate
Premature closure usually reduces the effective rate
Return capped at the fixed rate, same as FD

Best for: Building a savings habit for a short-to-medium-term goal when you don't have a lump sum to deposit upfront.

Questions
Does RD offer the same interest rate as FD?

Rates are usually similar at the same bank, but RD interest is earned only on the deposits made so far each month — not the full final amount from day one — so an RD's effective return curve looks different from an FD's even at the same headline rate.

Where do these numbers actually come from?

The same calculation engine that powers our standalone calculators and Compare Lab — nothing here is a separate or simplified estimate. Every assumption (rate, tenure, tax) is visible and adjustable once you open the comparison with your own numbers.

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All figures are illustrative projections based on the assumptions you select, not guaranteed returns. Validate tax and scheme rules before making financial decisions.