Both Fixed Deposits & Recurring Deposits are meaningful in its own scenarios. Fixed Deposits (FD) is the deposit if you have a lump sum amount to deposit at once for a specified period. If you have the sufficient money to invest in FD Whereas if you do not have the a lump sum amount to invest and you want to deposit periodically smaller amount, then RD will be better option for you. If you are opening the FD/ RD offline mode through branch of your bank, then the amount deposited will be tax free under income tax. But now a days many banks are providing their customers FD & RD through online banking called eFD & eRD. In online mode rate of interest will be similar but the amount of deposit will not be exempted under section 80(C) of income tax whereas the but you save your time from opening A/C through bank. After completion of specified period (term), the amount will automatically be refunded into same A/C from which eFD/ eRD was debited. The interest earned will be as income & not exempted by income tax. For senior citizens there is relatively higher rate of interest. But anyhow it is recommended to keep money in FD or RD instead of keeping in the saving A/C in order to fight inflation and increase the account balance. The deposite rates of few leading banks are mentioned in the link given below:
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Thanks for the post. Its really very informative...........
ReplyDeletehttp://www.lokhitbharti.com/
Yes i agree with ur comments.In FD we have to give money at the time when we open an FD a/c,and we can withdraw it back with interest on the maturity date
ReplyDeletein RD we have to invest a fixed sum of amount monthly till the maturity date of it,we cant withdrew RD before maturity date.. saverable.com