FD vs RD : which one better  

Fixed Deposit and Recurring Deposit are the most popular routes of investment in India. Primarily offered by well-known financial institutions and are considered the safest modes of investment.

The principal differences between FD and RD:

Terms of Investment

FD: In Fixed deposit lock your money in specific time of tenure. People with excess cash also use FDs to keep their cash safe while earning an income.

RD: In RD people save some amount every month. They predecided by investor. RD is good for peoples who want to save a part of their regular income. Non-payment of the monthly deposit can lead to penalties.

Interest earned & Amount Withdrawals

FD: FD given a feather earn interest with basis of monthly, quarterly. half-yearly and maturity payouts. Though the return on investment is higher in an FD, you should look for the best FD

Rates.

RD: In RD investor get fixed rate of interest at the end of tuner.

Tax-Free Deposits

FD: You have the option of choosing a tax-free FD which has a lock-in option of 5 years. Since you are saving on tax, there is no option for premature withdrawal or loans against the FD.

RD: No such option available under RD