In the market many investment options available for people who wish to invest their money. However, they should first study the various investment options, compare them, and then select the one that is most suited for them.
Fixed deposit (FD) and Recurring Deposit (RD) is most famous, preferred and popular investment options across India. People prefer these investment tools as their money is safe and secure in the bank. Also, they get interest on their investment.
There are two type of term deposit Fixed deposit (FD) and Recurring Deposit (RD):
What is FDs Deposit: FDs is a type of term deposit that gives you a fixed interest rate until maturity. Investing in FDs you can save and earn money at the same time. Fixed deposit (FD) also offers a higher rate of interest compared to a regular savings account.
What Is Recurring Deposit (RD): Recurring Deposit investor save your fixed amount on monthly basics. Earn interest at the rate applicable to fixed deposits. Recurring Deposit for small investor who want to invest the money for long term.
Differences Between FD vs RD:
Investment amount: In fds one time invest fixed amount whatever investor want. in the case of RD you can save some amount monthly Basie.
Tenure: In FDs you can invest 7 days upto 10 years. In the case of RD You can invest 6 month to 10 years.
Interest: The interest gets credited on a quarterly /monthly or on maturity. In the case of RDs interest earned on an RD is paid on maturity along with the capital amount.
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