{"id":10663,"date":"2026-02-23T09:49:41","date_gmt":"2026-02-23T09:49:41","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=banking&p=10663"},"modified":"2026-02-23T09:49:41","modified_gmt":"2026-02-23T09:49:41","slug":"fd-vs-rd-maturity-comparison-table-2026-guide","status":"publish","type":"banking","link":"https:\/\/lemonn.co.in\/blog\/banking\/fd-vs-rd-maturity-comparison-table-2026-guide\/","title":{"rendered":"FD vs RD Maturity Comparison Table (2026 Guide)"},"content":{"rendered":"\n

If you\u2019re confused between a Fixed Deposit (FD)<\/strong> and a Recurring Deposit (RD)<\/strong>, the biggest difference shows up in the maturity amount \u2014 especially when you compare lump sum vs monthly investment.<\/p>\n\n\n\n

Below is a clear comparison table with practical examples to help you understand which option may give better returns.<\/p>\n\n\n\n

Scenario 1: Total Investment \u20b91,20,000 for 1 Year<\/h2>\n\n\n\n

Interest Rate Assumed: 8% per annum (compounded quarterly)<\/strong>
(Rates are for illustration and may vary by bank in 2026.)<\/em><\/p>\n\n\n\n

Particular<\/th>Fixed Deposit (FD)<\/th>Recurring Deposit (RD)<\/th><\/tr><\/thead>
Investment Pattern<\/td>\u20b91,20,000 one-time<\/td>\u20b910,000 per month<\/td><\/tr>
Total Amount Invested<\/td>\u20b91,20,000<\/td>\u20b91,20,000<\/td><\/tr>
Interest Earned (Approx.)<\/td>\u20b99,600 \u2013 \u20b99,800<\/td>\u20b95,200 \u2013 \u20b95,600<\/td><\/tr>
Maturity Amount<\/td>\u20b91,29,600 \u2013 \u20b91,29,800<\/td>\u20b91,25,200 \u2013 \u20b91,25,600<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Why FD Earns More?<\/h3>\n\n\n\n

In FD, the entire \u20b91,20,000 earns interest for the full year.
In RD, monthly deposits earn interest only for the remaining months.<\/p>\n\n\n\n

Scenario 2: Total Investment \u20b93,00,000 for 2 Years<\/h2>\n\n\n\n

Interest Rate Assumed: 8.25% per annum<\/strong><\/p>\n\n\n\n

Particular<\/th>Fixed Deposit (FD)<\/th>Recurring Deposit (RD)<\/th><\/tr><\/thead>
Investment Pattern<\/td>\u20b93,00,000 one-time<\/td>\u20b912,500 per month<\/td><\/tr>
Total Amount Invested<\/td>\u20b93,00,000<\/td>\u20b93,00,000<\/td><\/tr>
Interest Earned (Approx.)<\/td>\u20b950,000 \u2013 \u20b952,000<\/td>\u20b927,000 \u2013 \u20b930,000<\/td><\/tr>
Maturity Amount<\/td>\u20b93,50,000 \u2013 \u20b93,52,000<\/td>\u20b93,27,000 \u2013 \u20b93,30,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Again, FD generates higher returns because the full amount is invested from Day 1.<\/p>\n\n\n\n

Key Differences That Impact Maturity<\/h1>\n\n\n\n
Factor<\/th>FD<\/th>RD<\/th><\/tr><\/thead>
When Money Is Invested<\/td>Entire amount at start<\/td>Monthly installments<\/td><\/tr>
Interest Calculation<\/td>On the full principle<\/td>On reducing the time period<\/td><\/tr>
Best For<\/td>Lump sum investors<\/td>Monthly savers<\/td><\/tr>
Effective Return<\/td>Usually higher<\/td>Slightly lower<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

When RD Can Be Better<\/h1>\n\n\n\n

RD is useful when:<\/p>\n\n\n\n

\u2714 You don\u2019t have lump sum funds
\u2714 You want disciplined savings
\u2714 You\u2019re saving for a short-term goal
\u2714 You want automatic monthly deduction<\/p>\n\n\n\n

Even though maturity is lower compared to FD (for the same total amount), RD helps build savings gradually.<\/p>\n\n\n\n

Important Notes<\/h1>\n\n\n\n
    \n
  • Interest rates vary by bank and tenure.<\/li>\n\n\n\n
  • Compounding frequency (quarterly vs. monthly) affects the maturity amount.<\/li>\n\n\n\n
  • Interest earned is taxable as per your income tax slab.<\/li>\n\n\n\n
  • TDS may apply if interest exceeds the prescribed limits.<\/li>\n<\/ul>\n\n\n\n

    Conclusion<\/h1>\n\n\n\n

    If you already have a lump-sum amount,\u00a0an FD usually offe<\/strong><\/span>rs a higher maturity value than an RD for the same total investment.<\/strong><\/p>\n\n\n\n

    If you prefer a monthly<\/span> savings discipline,\u00a0RD is more suitable, even if the final maturity amount is slightly lower.<\/p>\n\n\n\n

    Many investors use both \u2014 FD for surplus funds and RD for regular savings.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-10663","banking","type-banking","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking\/10663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/banking"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=10663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}