FD vs RD Calculator
Fixed Deposits and Recurring Deposits are both safe savings instruments, but they work differently. An FD compounds a lump sum from day one. An RD is like a SIP — you deposit monthly. This calculator compares them directly: enter the amount (lump sum or monthly) and see which gives better returns over the same period.
Frequently Asked Questions
Why does FD almost always beat RD at the same rate?+
An FD earns interest on the full amount from day one. An RD earns interest on each deposit only from when it's made — the first month's deposit earns for the full tenure, but the last month's deposit earns for just one month. So the effective rate on an RD is roughly half the nominal rate.
When should I choose an RD over an FD?+
Choose RD when you don't have a lump sum but can save monthly — it's a disciplined savings habit. Also useful for short-term goals (vacation, appliance) where you want to build up funds monthly. RD is not for maximising returns; it's for regular savers without idle capital.
Are FD and RD interest taxable?+
Yes — interest is added to your income and taxed at slab rate. Banks deduct TDS at 10% if interest in a financial year exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G (under 60) or 15H (senior citizens) if your total income is below the taxable limit to avoid TDS.
What are current FD rates in India (2024-25)?+
Major banks offer 6.5–7.5% for general public and 7–8% for senior citizens on 1–3 year FDs. Small finance banks offer 8–9%. NBFC FDs can go up to 9–10% but carry slightly higher credit risk. Always check RBI-regulated institutions and check DICGC insurance (₹5L per bank).