Is RD better than FD? Please tell me.
Both options are safe. However, they work differently and suit different needs. When I first started saving, I had to choose between a Fixed Deposit and a Recurring Deposit.
With an FD, you invest a lump sum at once for a fixed period. From the very first day, your entire amount earns interest. You also get to choose whether you want the interest monthly, quarterly, or only at maturity. I find FDs perfect when I have extra money and want to lock it in for long-term goals like retirement, buying property, or funding education.
With an RD, you save a fixed amount every month. Slowly, your savings grow, and at the end of the tenure, you get back your deposits along with interest.
For me, RDs build discipline and are great for short or medium-term goals like a vacation or a car down payment. Some banks like Suryoday offer the same rate of interest, that is 8.40% for both. So, research properly before investing.