FD vs RD Comparison Calculator
Choosing between an FD and an RD depends on whether you have a lump sum amount to invest or if you want to save a fixed amount every month. Use this tool to compare the total interest and maturity of both options.
⚡ The Quick Difference
An FD earns more interest because the entire amount is invested from day one. An RD is ideal for disciplined savings from monthly income.
Example: ₹1.2 Lakh in FD @ 7% for 1 year = ₹8,589 interest vs. ₹10,000/month in RD @ 7% for 1 year = ₹4,608 interest.
Fixed Deposit (FD) vs. Recurring Deposit (RD)
Both are safe, guaranteed-return investment vehicles provided by banks, but they serve different financial needs. Here is a breakdown of how they compare:
Fixed Deposit (FD)
- Investment: One-time lump sum.
- Interest: Calculated on the entire amount from Day 1.
- Returns: Higher total interest earned.
- Best For: Idle cash, bonuses, or inheritance.
Recurring Deposit (RD)
- Investment: Fixed amount every month.
- Interest: Calculated on every installment based on its duration.
- Returns: Lower total interest compared to FD of the same total.
- Best For: Salaried individuals building a corpus.
Why does FD earn more interest?
It's all about the "Time Value of Money." In an FD, the entire ₹1.2 Lakh is working for you for the full 12 months. In an RD, only the first ₹10,000 installment works for 12 months. The second installment works for 11 months, and the last one works for only 1 month. This is why, even at the same interest rate, a lump-sum FD will always outperform a staggered RD.
Privacy and Savings Security
Comparing your savings strategies often involves entering sensitive details about your liquid net worth. Many financial sites capture this data to pitch you high-commission mutual funds or insurance plans. OrangeTool is private. This comparison tool runs locally in your browser. We don't see your investment amounts, and your data never leaves your device. You can plan your savings in absolute peace.