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Fixed Deposit Vs Recurring Deposit: Fixed Deposit Or Recurring Deposit? Which will be more profitable .....



Fixed Deposit Vs Recurring Deposit: Fixed Deposit Or Recurring Deposit --- Which is Better?

Fixed Deposit (FD) and Recurring Deposit (RD) are one of the two ways to invest money. Because there is no risk in these two types of investments. In other words, when you think of safe, secure investment, the first thing that comes to mind is the words of these two. The main advantage of investing through these two means is that after a certain period of time, a certain amount of money will come in handy. And there will be no risk. So investing in a fixed deposit or recurring deposit is much safer than investing in equities. Because this type of deposit is not associated with the market and a certain amount of money also comes in handy.

However, investing in fixed deposits and recurring deposits leaves a certain amount of money in the hands of the investor after a certain period of time. But a comparison of these two investment mediums shows that higher returns or higher returns are possible from fixed deposits as compared to recurring. In the case of fixed deposits, there are guaranteed benefits, flexible term and loan facility, but in the case of fixed deposits of some banks, the investor can also enjoy the benefits of credit card.

What is Fixed Deposit?
The name Fixed Deposit (FD) implies that the term for such investments is fixed. At the same time, the amount of interest received from it is also fixed. The first step in investing is to deposit money. And the term of the investment is 7 days to 10 years, in some cases it can be 20 years. There is no need to open a separate account for a fixed deposit. This is because a fixed deposit may be associated with the investor's savings account.

What is Recurring Deposit?
One of the best ways to secure investment is through recurring deposit (RD). Where a certain amount of money has to be deposited every month. In this case the interest rate is fixed and this rate does not change over the entire term of the recurring deposit. Usually the term of recurring deposit can be from 6 months to 10 years.

Fixed Deposit or Recurring Deposit --- Which is Better?
Let's say someone doesn't have a lot of money or a lot of money, but wants to invest with a small amount of money. In that case he should choose the option of recurring deposit. A small amount of money has to be deposited every month and the amount of money he earns with interest at the end of the investment period will be credited to his linked savings or current account.

But when a person has a large amount of money in his hand, he should choose the option of fixed deposit. In this case again the interest earned in one cycle will not enter the linked account of the investor. With the first investment, it will be reinvested. As a result, in the next cycle, the principal will increase, and the interest will be much higher. As a result, income from such investments will be good.

Comparison of Fixed Deposit and Recurring Deposit--

Amount of money invested:
If a person wants to invest a huge amount of money, then the best medium is - Fixed Deposit. This facility is available from any bank or financial institution.

On the other hand, if a person wants to invest a small amount of money every month, then recurring deposit would be a good way. This facility is also available from any bank or financial institution.

Investment term:
The term for investing in a fixed deposit is usually 7 days to 10 years. How long the investor wants to invest this time will depend on him.

The investment term for recurring deposits is usually 6 months to 10 years. The investor will choose how long the investment will last.

Amount of interest:
In case of fixed deposit, the amount of interest accrued at maturity is much higher than the amount of interest accrued at the end of recurring deposit.

Loan benefits:
Investors can also avail loan facility in case of fixed deposit. The loan amount may not be the same, but the maximum loan limit may be 90% of the value of the fixed deposit.

On the other hand, in the case of recurring deposits, the loan facility can also be matched. The maximum loan amount can be up to 90% of the amount deposited.

Important Things:
If the investor wants to invest the remaining amount, he can invest that money in a fixed deposit. And as a result, he will be able to earn a good income as interest from that investment.

On the other hand, in the case of recurring deposits, the investor has to deposit a certain amount of money at regular intervals. As a result, the habit of saving will naturally develop in a person.

Issue issues:
When investing in a fixed deposit, the investor first deposits a large amount of money or lump sum. As a result, there is no headache in depositing money on time.

On the other hand, recurring deposits will have this kind of headache. Because if the investor is not able to deposit a certain amount of money in the recurring deposit in 6 consecutive months, then the bank will be able to close his recurring deposit account.

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