{"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 class=\"wp-block-paragraph\">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 class=\"wp-block-paragraph\">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":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/"},"uagb_comment_info":0,"uagb_excerpt":"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. Aspect Fixed deposit (FD) Recurring deposit (RD) Investment mode Lump sum at once Small&hellip;","_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}]}}