How an FD works
An FD typically starts with a lump-sum deposit for a chosen tenure. Interest is calculated according to the product's terms and may be compounded at specified intervals.
How an RD works
An RD typically involves depositing a fixed amount at regular intervals, such as monthly, for a chosen tenure. Each instalment has a different time remaining until maturity.
The main difference
The biggest practical difference is the cash-flow pattern. FD suits a situation where you already have a lump sum, while RD is structured around regular contributions.
What should you compare?
Compare the amount invested, tenure, applicable interest rate, compounding rules, maturity amount and tax treatment. Rates and product rules vary by institution and can change over time.
Use our calculators
Use the FD and RD calculators to estimate maturity values using your own amount, rate and tenure assumptions.