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  • Differences Between Recurring Deposit and Fixed Deposit

    How Does The Fixed Deposit and Recurring Deposit Schemes Work?

    Fixed Deposit and Recurring deposit are two most popular investment schemes in India, specially for the risk averse investors. The major advantage of investing your money in a fixed deposit scheme or recurring deposit plan is that there are fixed returns with no risk. But many a times, investors get confused if they have to invest in a RD plan or a FD scheme. Both RD and FD are fixed income products that are offered by all major banks and financial institutions. In both the schemes, you can invest a specific amount and on the amount invested, you will receive a fixed interest. At the end of tenure, investors will receive both the capital as well as the interest.

    Major Difference Between FD and RD

    When we talk about RD and FD, there is one single important difference that you must be aware of, before we talk about other differentiating points. While both RD and FD runs over a tenure, FD investors can deposit an amount once while RD investors must deposit a fixed amount at regular intervals.

    Fixed Deposit

    • Customers who opt for fixed deposits will have to choose a tenure, which usually ranges from 7 days to 10 years, and must deposit an amount once. The interest on the amount will be credited to the investor’s account on a monthly or a quarterly basis.

    Recurring Deposit

    • When it comes to recurring deposits, investors can deposit a fixed amount every month and can earn interests. The interest is paid along with the capital at maturity.

    Recurring Deposit vs Fixed Deposit

    Features / Scheme Fixed Deposit Recurring Deposit
    Tenure Usually, for FD schemes, the tenure ranges between 7 days to 10 years. The investor can choose a tenure that he is most comfortable with. Tenure for Recurring deposits usually vary from 1 year to 10 years. The customer has to deposit a fixed amount at regular intervals over the tenure.
    Investment Limit There is no limit on the amount that can be invested in a fixed deposit scheme. But, this limit generally depends on the bank and the minimum investment is Rs. 100 and multiples while the maximum limit is Rs. 1.5 lakh. While there is no prescribed minimum or maximum limit, this usually depends on the bank. Many banks have the minimum investment limit as Rs. 1000 and and the maximum limit as Rs. 15 lakhs per month.
    Rate of Return For a period of an year, the interest rate varies between 6.96% to 8.00%. The interest rate depends on the capital and tenure opted for. The interest rate for FD is slightly higher than that of RD. The interest rate varies between 5.25% to 7.90% for a tenure of one year. The rate of interest usually depends on tenure and monthly investment amount.
    Tax benefits For fixed deposit, a tax exemption under the section 80C of Income Tax Act 1961 is applicable. Income tax will be not deducted if the interest you earn on your rd is up to Rs.10,000.
    Documents Required Identity Proof and address proof. Customers will have to submit documents like PAN card, passport and income documents, if required. Address proof and Identity Proof. Investors will have to submit documents like PAN card, passport and income documents, if required.
    Income Interest Interest earned on your FD is taxable and most of the banks deduct TDS. Interest earned on your RD is taxable and most banks do not have the facility of TDS.
    Additional Benefits Loan Facility
    Eligibility
    • Resident Individuals
    • Hindu Undivided Families
    • Public and Private Limited Companies
    • Trusts and Societies
    • Resident Individuals
    • Trusts and Societies
    • Hindu Undivided Families
    • Public and Private Limited Companies
    Withdrawal At the end of tenure. Premature withdrawal is allowed with penalty. At the end of opted tenure. Premature withdrawal is allowed with penalty.

    What Should You Choose - RD or FD?

    For people who do not have a lump sum to invest in a FD, but can afford a small portion of investment amount from income every month, a recurring deposit (RD) seems to be the right fit. Both RD and FD are best suited for risk averse investors who are mostly in the lower tax slab. Use an online recurring deposit calculator to see what suits best for the amount that you can invest. Although one single investment product cannot meet all needs, a RD is preferred by many because it puts considerably less financial strain and gives almost the same returns as FD.

    Read More Article on Recurring Deposit

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    Recurring Deposit by Banks
    Recurring Deposit by other Institutions

    RD Reviews

  • Page 1 of 50 1 2 3 4 5
    • Punjab National Bank Recurring Deposit
      "Good online option for RD with PNB"
      PUNJAB NATIONAL BANK
      0.5 3.0/5 "Satisfactory"
      The online facility is there for RD, they are providing moderate interest for recurring deposit. I can deposit minimum of Rs. 1000, they are providing the interest around 7.1% for per annum. I could deactivate the RD through online but it was not successful.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Dec 04, 2018
    • Kotak Recurring Deposit
      "Average service"
      KOTAK MAHINDRA BANK
      0.5 3.0/5 "Satisfactory"
      I have a Recurring deposit account with KMB from last 8 months, i invest an amount of Rs 500 every month. Customer support was average with this bank and i was not much satisfied with the terms and conditions. I am not aware of the returns on investment.
      Was this review helpful? 1
      , bangalore
      Reviewed on Nov 29, 2018
    • Oriental Bank of Commerce Recurring Deposit
      "Very good banking"
      ORIENTAL BANK OF COMMERCE
      0.5 5.0/5 "Blown Away!"
      I have a recurring deposit account with Oriental bank of commerce. Last 20 years before i have opened the account. I have been depositing the minimum amount of Rs. 500 every month. I have chosen the tenure period of 1 year earlier and i have increased the same. Since the bank branch is nearby, i have selected my deposit with oriental bank.
      Was this review helpful? 1
      , new delhi
      Reviewed on Nov 28, 2018
    • HDFC Bank Recurring Deposit
      "Good"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I have a Recurring deposit account with HDFC Bank and it was taken before 1.5 years. I can maintain the account through net banking and it was easy. I have invested 50K for 2 years. I am getting 6.25% of interest rate which was okay. The customer service is average.
      Was this review helpful? 6
      , chennai
      Reviewed on Nov 23, 2018
    • ICICI Bank Recurring Deposit
      "Good Experience"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      I have a recurring deposit in ICICI. Every month i have been depositing a particular amount and i will be getting good benefits. I don't use the customer care service. Online services always I'm using and i will look up on. Every 1 year i have been renewing the Recurring deposit when its coming to my account. Somewhere around 7.5% interest rate i will get from this recurring deposit.
      Was this review helpful? 3
      , faridabad
      Reviewed on Nov 22, 2018
    • HDFC Bank Recurring Deposit
      "Its Better"
      HDFC BANK
      0.5 4.0/5 "Great!"
      They are providing interest for the RD amount, when I done the preclosure they are taking 2% of interest. I have deposit Rs.2 ,25,000 . I took the RD for 4 years. I done the preclsoure in 3 years. They didn't provide much interest. Normally I make the ecs payment.
      Was this review helpful? 2
      , chennai
      Reviewed on Nov 19, 2018
    • HDFC Bank Recurring Deposit
      "Good"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I have a recurring deposit account with HDFC Bank. It was taken 2 months back. I am maintaining a salary account with them and they suggested me for RD. In returns I get 7% as an interest rate. I have to deposit monthly 1,000 rupees and the locking period is one year.
      Was this review helpful? 5
      , tiruchirapalli
      Reviewed on Nov 16, 2018
    • andhra Bank Recurring Deposit
      "Average service"
      ANDHRA BANK
      0.5 3.0/5 "Satisfactory"
      The service provided was very good with Andhra bank based on the recurring deposit,Customer service offered by them was very good,. At the end of the term I will get one reminder from them confirming that the amount is going to get matured.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Nov 16, 2018
    • Karnataka Bank Recurring Deposit
      "Good service"
      KARNATAKA BANK
      0.5 3.5/5 "Pretty good"
      Karnataka bank is giving good service for the recurring deposit . There is no annual charges for the account They are going quiet good response . Am getting income tax benefits too . Overall its average investments plan . It has some nominal good returns.
      Was this review helpful? 1
      , bangalore
      Reviewed on Nov 02, 2018
    • SBI Recurring Deposit
      "Overall good"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      The experience for a recurring deposit is good. There are no issues in the process. The customer support and response is fine too at State Bank of India as I had no issues to open this account. I am also happy with the interest earned. Till date no hassles.
      Was this review helpful? 10
      , bangalore
      Reviewed on Oct 27, 2018
    • Kotak Recurring Deposit
      "Not satisfied"
      KOTAK MAHINDRA BANK
      0.5 2.0/5 "Expected more"
      I have a Recurring Deposit account with Kotak Mahindra Bank from last 1 year, I deposit an amount of Rs 3000 every month and the returns are not that good. I have withdrawn the amount in 6-7 months and there was no penalty charged.
      Was this review helpful? 3
      , pune
      Reviewed on Oct 24, 2018
    • Axis Bank Recurring Deposit
      "Easy process"
      AXIS BANK
      0.5 5.0/5 "Blown Away!"
      It was very convenient to open a recurring deposit with Axis Bank. I can do it online and I did not have to visit the bank for any formality. The lock in period for this account is for a year. I can also close the account online too. I am happy with the process too.
      Was this review helpful? 10
      , bangalore
      Reviewed on Sep 04, 2018
    • HDFC Bank Recurring Deposit
      "Good service"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I have opened a Recurring Deposit account in HDFC bank from last 1 year. I have to pay an amount of Rs 25000 every month and all the terms & conditions were explained by the customer support of HDFC bank. In returns i get 6% as an interest which is quite good.
      Was this review helpful? 21
      , new delhi
      Reviewed on Aug 30, 2018
    • IOB Recurring Deposit
      "Good Service"
      INDIAN OVERSEAS BANK
      0.5 5.0/5 "Blown Away!"
      I've a recurring deposit with the Indian bank. I am depositing 1000 rupees a month. There hasn't been any issues with the deposit so far. It is easy to start and make payments to the recurring deposit. Auto debit option is also there for the deposit.
      Was this review helpful? 14
      , ahmedabad
      Reviewed on Jul 28, 2018
    • IOB Recurring Deposit
      "Good Service"
      INDIAN OVERSEAS BANK
      0.5 5.0/5 "Blown Away!"
      I've two recurring deposit with the IOB, I am depositing 2000 every month. There is no additional benefits apart from the nominal interest they provide. It is easy to start a recurring deposit with the Indian bank.
      Was this review helpful? 11
      , ahmedabad
      Reviewed on Jul 28, 2018
    • Kotak Recurring Deposit
      "Excellent Service"
      KOTAK MAHINDRA BANK
      0.5 5.0/5 "Blown Away!"
      I had opened this account a long time back and i had opened it online and the process in taking it has been easy, i had been depositing 2000 every month. There has been a very good service which they had been providing so far. I had been doing everything through their mobile application and it had been easy in using it.
      Was this review helpful? 13
      , chennai
      Reviewed on Jul 17, 2018
    • City Union Bank Recurring Deposit
      "Good Service"
      CITY UNION BANK
      0.5 5.0/5 "Blown Away!"
      I travel every year with my family for that purpose I deposit Monthly 5000 which gets auto debited from the account. They also offers 7.1 % interest rate. The deposit was started from the branch and it has been a very good experience with their services.
      Was this review helpful? 16
      , chennai
      Reviewed on Jul 13, 2018
    • ICICI Bank Recurring Deposit
      "Good Service"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      I've a recurring deposit with the ICICI bank. It is so easy to start recurring deposit with the iMobile App. You need to give the reference number to the bank and the whole deposit process is automated. The monthly deposit amount gets auto debited from the account.
      Was this review helpful? 13
      , chennai
      Reviewed on Jun 27, 2018
    • Kotak Recurring Deposit
      "Best"
      KOTAK MAHINDRA BANK
      0.5 5.0/5 "Blown Away!"
      I am having the recurring deposit account with the Kotak mahindra bank and I was not aware of the rate of interest. I would like to say that the response is fine one for me with the Kotak mahindra bank.
      Was this review helpful? 7
      , bangalore
      Reviewed on Jun 23, 2018
    • YES Bank Recurring Deposit
      "Excellent"
      YES BANK
      0.5 4.5/5 "Excellent!"
      Minimum tenure is around one year of time for the recurring deposit with the Yes bank. Response is also good one with the Yes bank. I don't have any issues with them till now. I am really happy with the Yes bank and I have not faced any hiccups with them.
      Was this review helpful? 4
      , mumbai
      Reviewed on Jun 23, 2018
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