Plan your investments with precision. Calculate your maturity amount and wealth gain for both Fixed Deposits (FD) and Recurring Deposits (RD) with our advanced educational tool.
Your money will grow by 45% over 5 years.
Unlike market-linked investments, FDs offer fixed interest rates immune to market volatility.
Easy premature withdrawal options available (subject to minor penalty) for emergencies.
Get up to 90% of your deposit amount as a low-interest loan without breaking your FD.
Banks deduct 10% TDS if interest exceeds ₹40,000 in a year (₹50,000 for senior citizens).
Invest in 5-year tax-saving FDs to claim deductions up to ₹1.5 Lakhs under Section 80C.
Submit these forms to prevent TDS deduction if your total income is below the taxable limit.
Understand the key differences to choose the right investment path.
| Feature | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| Investment Style | Lump-sum single payment | Regular monthly installments |
| Ideal For | Existing savings accumulation | Salaried individuals building a corpus |
| Interest Calculation | Earns interest on the full amount from day one | Interest earned progressively on each deposit |
| Tax Saving Option | Available (5-Year Lock-in) | Not Available |
| Flexibility | Rigid (Breaking incurs penalty) | Requires strict discipline for monthly payments |
FD calculation typically uses compound interest formula:
RD uses the future value of monthly annuity (payments at end of each month):
Yes, most banks allow premature withdrawal, but typically charge a penalty of 0.5% to 1% on the interest rate.
Yes, FD interest is added to your income and taxed according to your income tax slab. Banks deduct TDS if it exceeds limits.
Banks may charge a small penalty fee for missed installments. If missed for several consecutive months, the RD might be closed.
Yes, most banks offer an additional 0.50% to 0.75% interest rate on FDs and RDs for senior citizens (age 60+).
Yes, deposits up to ₹5 Lakhs per bank are insured by DICGC (a subsidiary of RBI), making them highly secure.
Most banks compound FD interest quarterly. This means interest earns interest every three months, accelerating growth.