Fixed income

FD vs RD

Fixed deposit vs recurring deposit—cash-flow fit, compounding, and how to compare quotes.

4 min read · Updated August 2026

Cash-flow difference

FD: invest a lump sum now. RD: invest fixed amounts on a schedule. Choose based on whether money is available upfront or monthly.

Compare apples to apples

Match tenure, compounding frequency and the exact quoted rate. Tax treatment can change effective return—check current rules for your situation.

Related calculators

Keep reading

Educational content from Aaru Wealth. Not investment, tax or legal advice.