Everyone wants to choose a financial instrument which offers high returns. The most commonly used secure instruments for investment are Fixed Deposit (FD) and Recurring Deposit (RD).
In Fixed Deposit, an amount is deposited for a fixed period of time. A fixed deposit provides interest on the deposited amount.
Whereas, in Recurring Deposits,the customer deposits fixed amounts in small intervals for a long period. The main purpose of a RD is to develop the habit of saving on a regular basis. When the term of RD expires, the whole amount is repaid along with the interest amount. The repeated occurrence of deposits makes it different from FD.