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