FD vs RD – which is better?

FD suits a lump sum; you lock a large amount and get predictable returns. RD suits regular savers who can invest a fixed amount every month. Both are low-risk; choice depends on whether you have a lump sum or monthly surplus.

Which gives more returns – FD or RD?

For the same total investment and rate, FD (lump sum) typically gives slightly higher maturity because the full principal compounds from day one. In RD, each installment compounds only for the remaining period.

FD vs RD Calculator

Compare fixed deposit and recurring deposit returns. Enter FD lump sum and/or RD monthly amount with the same rate and tenure to see maturity and interest.

Compare FD & RD

FD – Principal (₹)

RD – Monthly (₹)

Rate (% p.a.)

Tenure (years)

Comparison

FD: A = P(1+r/n)^(nt). RD: Maturity = Σ (monthly × (1+r/n)^(periods left)). Same rate and tenure; compare maturity.

FD uses one lump sum; RD uses monthly installments. For similar total investment (e.g. FD ₹1L vs RD ₹8333×12), FD usually yields more due to full principal compounding from start.

FAQs

Key Terms

Maturity amount: Final value received at deposit end: principal plus accumulated interest.
Compounding: Interest earned on both principal and previously earned interest.
Annualized rate: Interest rate quoted for one year; converted internally for period-wise calculations.

Benefits of This Calculator

Quickly compare tenure and rate combinations before locking deposits.
Understand maturity, principal, and interest split through chart-style outputs.
Use formula and FAQ context to validate bank app numbers confidently.

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When FD beats RD and vice versa

FD wins when you already have the lump sum — say, a bonus, a property sale, or a maturing insurance policy — because every rupee starts compounding from day one. RD wins when you do not have the lump sum and would otherwise spend the money: the discipline of a fixed monthly debit is often worth more than the small interest difference. The two products use the same headline rate at any given bank, so the comparison is really about your cash flow, not your return.

A common middle path is to start an RD now and convert the maturity into an FD — for example, a 3-year RD that builds up your emergency fund, followed by a 5-year FD on the maturity amount. The calculator above shows both products side-by-side at the same rate so you can decide based on the cash flow, not by guessing.

Same rate (7.0%), 5 years: lump sum vs monthly drip

FD: ₹6,00,000 lump sum: Maturity ₹8,49,575 — interest ₹2,49,575
RD: ₹10,000/month (also ₹6 lakh deposited): Maturity ₹7,17,090 — interest ₹1,17,090

Same rate, same total deposited, but the FD earns more than twice the interest. That is the cost of dripping money in versus committing it on day one — the price you pay for the convenience and discipline of an RD.