FD and RD are some of the best investment schemes in Indian. The interest rate of FD and RD generally higher than others saving account and this is the trusted and risk-free investment.
This writeup will help you to understand which is the best for your requirement.
What is a Fixed Deposit?
A Fixed Deposit is the safest investment option. The interest rate calculation happens every three months and then the interest rate became a principle amount. The FD interest rate calculation is very easy you can use an online FD calculator or you can also you the manual process.
What is a Recurring Deposit?
RD is also the best investment scheme of FD it also offers a higher interest rate. The interest rate that you earn on principle amount you can earn monthly, This is the main benefit of RD.
Interest Rate:
The interest rate of FD and RD is approx similar and the interest rate that a lender offers it will be close to 9% but it depends on the financial institution that you select for FD. PNB Housing now offer best FD rate that is 6.95%.
Taxes:
The interest rate you earn from FD and RD are taxable it can be avoided by filing 15G and 15H form.
