Which is a better investment option
Fixed deposits and recurring deposits are two popular investment schemes available for investing funds for the long term. The investments are not subject to any market risks and can earn a fixed rate of interest for a fixed tenure. While the two investment schemes have a lot of striking differences. Here are some differences between the two which will help you to decide which scheme is better : Mode of investment: The major difference between the two is that in fixed deposits you have to make a lump sum payment that you want to invest in a fixed deposit account. However, in the case of RD you have the option to make fixed payments at regular intervals. Returns: The returns earned on fixed deposits are higher than the recurring deposits because the amount of the fixed deposit is invested together at the beginning of the investment period so the interest will be calculated on the same principal amount for the same tenure. However in recurring deposi...