FD vs RD
A Fixed Deposit (FD) is a one-time lump sum locked for a fixed period at a fixed rate. A Recurring Deposit (RD) lets you deposit a fixed amount every month for the chosen period. Both are low-risk, bank-guaranteed savings; FDs suit money you already have, RDs suit building savings from your monthly income.
How interest is calculated
Banks usually compound FD/RD interest quarterly. This calculator uses quarterly compounding for the FD, and compounds each monthly RD instalment for its remaining time, which closely matches bank maturity values.
Frequently asked questions
Is FD interest taxable?
Yes. FD/RD interest is added to your income and taxed at your slab; banks deduct TDS if interest crosses the limit in a year. This calculator shows the pre-tax maturity value.
Why is my RD return lower than an FD at the same rate?
Because each RD instalment earns interest only for the months remaining after you deposit it — your money is invested for less time on average.