What is the difference between TDR and STDR?

TDR vs STDR

TDR and STDR terms are used in banking industry. Both are type of fixed deposit. TDR means Term Deposit and STDR means special term deposit. Following is main difference between TDR and STDR.

TDR

If you want to get interest on your fixed deposit after short period like week, month or quarterly, you have to deposit under TDR scheme. At that time, bank will pay you normal fd rates. In all bank, their softwares have the option of TDR. After setting, your Fixed deposit money with TDR option, your saving account will connect with your Fixed deposit and at the completing of your time period, you will get the interest on your FD in your saving account. If your fixed deposit for 5 years but you want to Get interest after completing every month, your this choice will be accepted under TDR.

STDR

If you are not interested to get interest in short period, you will get interest on the date of maturity of your fixed deposit. Your FD will made under special term deposit scheme. In this scheme, you will get one extra benefit. After every quarter, you will get interest on your collected interest in three months. For example, if you are getting 9% interest on FD under TDR scheme but if you will deposit under STDR scheme your annual interest  will more than this because you will get the interest on past collected interest.

The following article is an initiative of svtution and is intended to create awareness among readers.