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RD vs SIP — which monthly savings habit builds more?

A Recurring Deposit locks in a fixed rate on whatever you've deposited each month. A SIP into equity funds carries market risk but a historically higher long-run return. Compare both on the same monthly amount.

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RD Calculator vs SIP 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
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.

SIP (Systematic Investment Plan)

A fixed amount invested into equity mutual funds every month, automatically, regardless of whether the market is up or down.

PROS
No guessing when to invest — you buy at every price point over time
Highly liquid — redeem within a few business days
No cap on how much you can invest
CONS
No guaranteed return — depends entirely on market performance
Requires discipline to continue through downturns
Short-term gains (under 1 year) are taxed at a higher rate

Best for: Long-term goals (7+ years) where you can tolerate volatility for higher growth potential.

Questions
Is RD safer than SIP?

Yes — RD returns are fixed and bank-guaranteed, while SIP returns depend entirely on market performance. RD suits shorter, safety-first goals; SIP suits longer horizons where you can ride out volatility.

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.