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Difference Between Fixed & Recurring Deposits | Fixed Deposit Vs Recurring Deposit
Fix deposits and recurring deposits are both different types of plans so they can not be compared. The rate of interest in the recurring deposit (RD) scheme is imposed by the rates applying on Fix Deposit (FD) and it also comes in the category of fixed deposits.
What is the difference between Fix Deposit (FD) and Recurring Deposit (RD)
What is the Fixed Deposit?
The advantage of this scheme takes time when we have a second amount that we invest in fixed deposits for a fixed period, it can be both investments, one in which you can take interest with the maturity of the fixed fixed deposits. Secondly you can take it at a monthly interval. This is a purely deposit plan and especially for them: Suitable. Those who have got the amount of money from anywhere or those who retired. Those who should regularly income but they do not want to spend the principal, they should take the option to take interest on the monthly interval.
Johns only have to invest them on the maturity period, it should take principal and interest or re-invest. First of all, when a fix is deposited, whenever a person deposits some money in any bank for a certain time and the bank gives interest at that amount. Whatever money is deposited in FD, they give more interest than the bank savings account. As the interest of 3 to 6 percent in the savings account is given or it is different according to the interest rate bank. But as far as I believe that almost all the banks are interested rate between 3 to 6 percent.
While the interest of 7 to 9 percent is given to the FD account, in today’s time, almost all the banks have the facility to make fixed deposits such as SBI Bank Axis Bank HDFC Bank State Bank of India Bank of Baroda etc.
How to open FD account
How to open FD account offline
You can open FD account both online or offline, to open the FD account offline, you have to go to the bank branch, there you will be given a fixed deposit form, after filling that form you have to submit it to the bank. and your deposit account gets opened.
How to open FD account online
To open an online fixed deposit account, you can open a fixed deposit account using net banking.
Although in today’s time almost all banks provide online net banking facility, but the process of all banks is slightly different from each other.
Therefore, in which bank you want to open your fixed deposit account, you can open your account according to its given guidelines.
Advantages and disadvantages of fixed deposit
Advantages of FD
The biggest advantage of getting an FD is that your investment in it remains hundred percent secure, in which the risk of losing your investment is negligible.
There is absolutely no chance of risk in this as it is not linked in any way.
As soon as your FD matures, both the principal amount plus the interest amount in your bank account are credited to your bank account.
The biggest advantage of this is that in this you get a higher interest rate than a savings account, which is very good for you.
Disadvantages Of Fixed Deposit
If you take your FD before the match, then at such a time, the bank does not give you high interest rates. As you have made an FD for 10 years and you break it in one year or take money from it. In such a situation, the bank also charge some penalty from you, and along with you also gives a lot of interest rate at the Principal Avount. The second is the biggest loss or that if you earn more than 10,000 rupees in 1 year from your FD, you have to pay 10 % tax.
Open the Fix Deposit (FD) Account
You can open FD in any financial bank or post office.
How to double your money with FD
As I already told you that you get interest on fixed deposits and your money increases only through interest. How many days will your money be double or depends on your bank how much interest rate is given to your fix deposit account. As if your bank is giving you the interest rate, run the interest rate from 72, whatever it goes, for so many years you deposit your money in the bank after so many years your money will double. As if your bank gives you eight percent interest then you (72 ÷ 8 = 9) will double your money on the fix deposit for 9 years.
Important things to keep in mind while making a fixed deposit
All your money deposited in the bank is not safe, in such a situation if your bank becomes bankrupt, then in the same situation you will get only ₹ 100000. If your bank account has deposited ₹ 500,000 and your bank becomes bankrupt, then in such a situation, the bank gives you only ₹ 100000, all the money becomes your los. Therefore, if you want to make a fix deposit of the amount, then it will be better to make fixation deposits in different banks.
What is Recurring Deposit Scheme (RD)?
This savings plan is also like the Fix Deposit Deposit Scheme, there is only so much difference, it does not have to deposit money together. The recurring deposit scheme is best for those who can not add a bigger a bigger but it is successful in adding money to a little bit. In which a little savings can be taken, the benefit of this scheme can be taken. There is a certain amount of money to be submitted every month. When the period is complete, all deposits are found, including interest. It is beneficial for people who have a problem in making big savings but can save a little bit and thus small savings grow.
You can do for children’s education, marriage, or any other capital destiny. Which of the FD and RD you are going to choose from, please tell us.
please read this also
Where can you open FD and rd account?
You can open FD and RD account in any bank or post office.
How to open FD account?
FD account can be opened online and offline
fd and rd full form?
fixed deposit and recurring deposit.