{"id":8254,"date":"2025-08-12T06:50:17","date_gmt":"2025-08-12T06:50:17","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=banking&#038;p=8254"},"modified":"2025-08-12T06:50:17","modified_gmt":"2025-08-12T06:50:17","slug":"difference-between-fixed-deposit-fd-and-recurring-depositrd","status":"publish","type":"banking","link":"https:\/\/lemonn.co.in\/blog\/banking\/difference-between-fixed-deposit-fd-and-recurring-depositrd\/","title":{"rendered":"Difference Between Fixed Deposit (FD) and Recurring Deposit(RD)"},"content":{"rendered":"\n<p>A fixed deposit (FD) and a recurring deposit (RD) are both term deposit instruments, but they serve different purposes. An FD requires a one-time lump-sum investment, whereas an RD allows periodic contributions. The table compares key aspects of FDs and RDs.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Aspect<\/th><th>Fixed deposit (FD)<\/th><th>Recurring deposit (RD)<\/th><\/tr><\/thead><tbody><tr><td>Investment mode<\/td><td>Lump sum at once<\/td><td>Small fixed amount monthly<\/td><\/tr><tr><td>Tenure<\/td><td>7 days to 10 years<\/td><td>6 months to 10 years<\/td><\/tr><tr><td>Returns<\/td><td>Interest rate fixed for entire tenure; typically higher than savings account<\/td><td>Similar or slightly lower than FD of same tenure<\/td><\/tr><tr><td>Liquidity<\/td><td>Premature withdrawal allowed with penalty<\/td><td>Premature closure allowed; partial withdrawals not usually permitted<\/td><\/tr><tr><td>Suitability<\/td><td>Ideal for those with surplus funds for long-term savings<\/td><td>Ideal for building savings through disciplined monthly contributions<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Both instruments are safe and covered by deposit insurance (up to \u20b95 lakh), and the interest is taxable. Choose an FD when you have a lump sum to invest, and choose an RD to build a corpus gradually.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-8254","banking","type-banking","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking\/8254","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=8254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}