FD vs RD Calculator

Manually computing both FD and RD maturity on the same principal requires two different formulas and, for RD, iterating over every monthly instalment, typically 12 to 60 separate calculations. This calculator performs both computations instantly and side by side.

The most common use case is for someone who has received a lump sum, say ₹2 lakh from a bonus, and is deciding whether to park it in an FD or spread it out into a 24-month RD. The FD vs RD Calculator shows in rupees how much more the FD would earn, which in most cases is enough to confirm that FD is the better use of an available surplus.

It is equally useful for comparing bank offers. Different banks offer different rates, if your current bank offers 7% and another offers 7.5%, adjusting the Interest Rate slider instantly shows the interest difference across both instruments. For investors who have already committed to an RD and want to understand what they are giving up, the FD Advantage figure provides a concrete number.

For investors deciding between bank deposits and market-linked instruments altogether, use the Compound Interest Calculator to model various compounding scenarios, and the SIP vs RD Calculator to benchmark against equity mutual fund returns.

Investors with a surplus evaluating safe investment options. If you have ₹1–5 lakh available and are unsure whether to book an FD or start an RD, this calculator shows definitively that an FD on the same amount at the same rate earns more. The decision then shifts to liquidity needs, do you need to keep the money accessible each month?

Salaried professionals building an emergency fund. Many salaried investors build emergency funds through monthly RDs because it aligns with their salary cycle. This calculator helps you see the cost of that convenience: if you already have three months' expenses saved, booking an FD and replenishing it monthly costs less in foregone interest than running an RD.

Senior citizens evaluating term deposits. Senior citizens typically receive a higher interest rate on both FD and RD. This calculator lets them compare both instruments at their special rate to find which maximises their fixed-income returns. They can also use the Fixed Deposit Calculator to compare monthly interest payout FDs (non-cumulative) against the cumulative maturity shown here.

Tax-aware investors nearing the ₹40,000 TDS threshold. If your interest income from deposits is approaching ₹40,000 in a financial year, this calculator helps you estimate whether the FD or RD version of a new deposit will push you over the threshold, allowing you to plan submissions of Form 15G or 15H proactively.

Students and young earners making their first deposit. For someone with ₹50,000 saved and wondering whether to book an FD or start a monthly RD, this calculator provides a clear rupee-and-paise answer, building financial literacy around time value of money without requiring any formula knowledge.

FD Maturity Amount, the total amount (principal + interest) you will receive at the end of the tenure if you book a cumulative FD with the full principal today. This is the highlighted primary output because it is always higher than the RD Maturity at the same rate.

RD Maturity Amount, the total amount received at the end of the tenure if you deposit the same total in equal monthly instalments via an RD. The RD Maturity will always be lower than FD Maturity because a large fraction of the principal arrives late in the tenure.

FD Interest Earned, the interest component of your FD maturity, i.e. FD Maturity minus the principal. This is the rupee return your full principal generates over the entire tenure.

RD Interest Earned, the total interest earned across all RD instalments. This is always less than FD Interest because each instalment compounds for a shorter period. A low RD Interest relative to FD Interest signals a short tenure, the staggering effect is most pronounced in short-tenure deposits.

FD Advantage, the difference between FD Interest and RD Interest, or equivalently between FD Maturity and RD Maturity. This is the cost of using an RD instead of an FD when you already have the full principal available. On a ₹1 lakh deposit for 12 months at 7%, the FD Advantage is roughly ₹2,000–₹3,000, a meaningful but not enormous difference that may be worth paying for the flexibility of monthly instalments if needed.

1. Enter your Total Investment Amount, the full principal you plan to invest, regardless of whether you are leaning towards FD or RD. For FD, this entire amount is deployed immediately. For RD, the calculator divides this by the tenure in months to compute the monthly instalment. A common amount is ₹1,00,000 (₹1 lakh).

2. Set the Interest Rate, enter the interest rate your bank currently offers for the chosen tenure. Check your bank's website or FD rate card for the exact rate. Most banks offer slightly different rates for different tenure brackets (e.g., 7.1% for 1 year but 7% for 2 years). Use the same rate for both instruments, the purpose is to isolate the timing effect, not a rate difference.

3. Adjust the Tenure, set the investment period in months. A 12-month tenure gives a fair short-term comparison; 60 months (5 years) shows how the FD Advantage behaves over a longer period. Note that tenure in this calculator is in months, so a 2-year comparison requires entering 24.

4. Read the maturity amounts, compare FD Maturity Amount and RD Maturity Amount in the results. The bar chart makes the gap immediately visible. The FD Maturity is always higher; the question is whether the margin justifies choosing FD over RD given your cash-flow situation.

5. Evaluate the FD Advantage, if this number is significant relative to the total interest earned, and you already have the full principal available, an FD is the clearly superior choice. If the advantage is small (short tenure, low rate) and you need monthly liquidity, an RD may be the better practical option.