FD vs RD Maturity Comparison Table (2026 Guide)
If you’re confused between a Fixed Deposit (FD) and a Recurring Deposit (RD), the biggest difference shows up in the maturity amount — especially when you compare lump sum vs monthly investment.
Below is a clear comparison table with practical examples to help you understand which option may give better returns.
Scenario 1: Total Investment ₹1,20,000 for 1 Year
Interest Rate Assumed: 8% per annum (compounded quarterly)
(Rates are for illustration and may vary by bank in 2026.)
| Particular | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| Investment Pattern | ₹1,20,000 one-time | ₹10,000 per month |
| Total Amount Invested | ₹1,20,000 | ₹1,20,000 |
| Interest Earned (Approx.) | ₹9,600 – ₹9,800 | ₹5,200 – ₹5,600 |
| Maturity Amount | ₹1,29,600 – ₹1,29,800 | ₹1,25,200 – ₹1,25,600 |
Why FD Earns More?
In FD, the entire ₹1,20,000 earns interest for the full year.
In RD, monthly deposits earn interest only for the remaining months.
Scenario 2: Total Investment ₹3,00,000 for 2 Years
Interest Rate Assumed: 8.25% per annum
| Particular | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| Investment Pattern | ₹3,00,000 one-time | ₹12,500 per month |
| Total Amount Invested | ₹3,00,000 | ₹3,00,000 |
| Interest Earned (Approx.) | ₹50,000 – ₹52,000 | ₹27,000 – ₹30,000 |
| Maturity Amount | ₹3,50,000 – ₹3,52,000 | ₹3,27,000 – ₹3,30,000 |
Again, FD generates higher returns because the full amount is invested from Day 1.
Key Differences That Impact Maturity
| Factor | FD | RD |
|---|---|---|
| When Money Is Invested | Entire amount at start | Monthly installments |
| Interest Calculation | On the full principle | On reducing the time period |
| Best For | Lump sum investors | Monthly savers |
| Effective Return | Usually higher | Slightly lower |
When RD Can Be Better
RD is useful when:
✔ You don’t have lump sum funds
✔ You want disciplined savings
✔ You’re saving for a short-term goal
✔ You want automatic monthly deduction
Even though maturity is lower compared to FD (for the same total amount), RD helps build savings gradually.
Important Notes
- Interest rates vary by bank and tenure.
- Compounding frequency (quarterly vs. monthly) affects the maturity amount.
- Interest earned is taxable as per your income tax slab.
- TDS may apply if interest exceeds the prescribed limits.
Conclusion
If you already have a lump-sum amount, an FD usually offers a higher maturity value than an RD for the same total investment.
If you prefer a monthly savings discipline, RD is more suitable, even if the final maturity amount is slightly lower.
Many investors use both — FD for surplus funds and RD for regular savings.
