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Gold vs RD — a physical hedge or a guaranteed bank return?

A Recurring Deposit gives a fixed, guaranteed rate on a monthly contribution. Gold has no guaranteed return but has historically held value differently during inflation and market stress. Compare both on the same monthly amount.

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Gold Calculator vs RD Calculator10-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
Gold

Physical or digital gold, valued by weight at the prevailing market price, plus making charges and GST on physical purchases.

PROS
Globally liquid — can be sold almost anywhere, quickly
Tends to hold or gain value during market stress, a useful hedge
No counterparty risk on physical gold
CONS
No income or yield — return comes purely from price appreciation
Making charges and GST reduce the effective return on physical gold
Storage and security are a real practical concern

Best for: A smaller diversifying allocation (typically 5–15% of a portfolio) as an inflation and crisis hedge, not a primary growth holding.

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 gold beat an RD's guaranteed rate?

Over some periods yes, over others no — gold's return isn't guaranteed the way an RD's rate is, so the comparison depends entirely on the specific years you run it over, which is exactly what this page lets you check.

Which is more liquid?

Both are relatively liquid, but an RD usually carries a penalty for early withdrawal before maturity, while gold (especially digital or SGB) can typically be sold without a similar penalty.

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.