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  • GURMEET SINGH

Fixed Deposit (FD)and Recurring Deposit (RD)

Updated: Mar 28






If you are looking to build a corpus to meet your financial goals or if you want to set aside a fixed amount for an emergency, a bank deposit is an easy and convenient way to do it. It is one of the safest investment options that are easy to open, operate and withdraw.


Fixed Deposit


Fixed deposit (FD) is one of the safest investment options through which people can earn relatively higher interest in comparison to a regular savings account. Interest is accumulated on the deposited amount over a fixed period of time. The interest rate depends on the type of lenders (public sector, private sector, or small finance banks). Senior citizens are usually offered higher interest rates. In the case of an emergency, you can easily liquidate your FD and get the funds.

The tenures in fixed deposit schemes are flexible. Investors can choose the tenure according to their convenience.


Recurring Deposit


A Recurring Deposit, commonly known as RD, is a unique term-deposit that is offered by Indian Banks. It is an investment tool which allows people to make regular deposits and earn decent returns on the investment. Due to the regular deposit factor and an interest component, it often provides flexibility and ease of investments to users/individuals. An RD account holder can choose to invest a fixed amount each month while earning decent interest on the amount. RDs are an ideal saving-cum-investment instrument.


Difference between Fixed Deposit and Recurring Deposit

While the interest rate and benefits are the same for FDs and RDs, there are some differences in terms of the manner of investment, minimum investment amount, tenure, e

Indian Bank RD Interest Rates 2021


Fixed Deposit Interest Rates of Top 10 Banks in India for below Rs.2 crore


FD Interest Rates


Given below are the latest interest rates offered by top banks for tenures ranging from 7 days to 10 years as of March 2021













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