In view of rising inflation, it is important to think about the future along with today. Especially when it comes to investment, you should plan ahead so that the money you save can help you in times of financial need.
If you invest with the thought that today’s saving will give returns tomorrow, then you are less likely to face loss. If you like to invest where your money is safe and also gives good returns, then you should know about Recurring Deposit (RD) and Fixed Deposit (FD).
RD vs FD: Which One is Better?
Recurring Deposit (RD) and Fixed Deposit (FD) are both safe investment options. Banks and financial companies offer these schemes. The main difference is in how you invest, the interest rate, and the benefits. Let us understand both.
What is RD and What is FD?
Recurring Deposit means you put a fixed amount every month. It is good for people who cannot invest a big amount at once. It is also useful for salaried people. At the end of the term, you get your money with interest. RD can be for 6 months to 10 years.
Fixed Deposit means you invest a big amount at one time. You cannot add more money later. At the end of the term, you get your money with fixed interest. FD can be for 7 days to 10 years.
The main difference is that in RD you pay every month, but in FD you pay at once. Both have TDS and some tax benefits.