How to Double Your Money? Know the Difference between RD and FD?- Watch Video

Everyone wants to save a part of their income and invest it in such a way that the money remains safe and doubles as soon as possible. For this, people adopt different methods of investment, which include FD, RD, LIC, Shares, Mutual Fund etc. In this, people who want their money to be secure and not affected by market risk, they take a lot of support from RD or FD.

What is the Key Difference? 

Money is deposited in FD in one go while money is deposited in installments in RD. If you have a lump sum money then you can invest in FD, while RD is beneficial for those who do not have money deposited. Employed people can invest in RD, because money does not have to be deposited in it. Apart from this, FD tenure can be from 7 days to 10 years while money can be invested in RD from 6 months to 10 years.

Which will give more Interest? 

If you take the average, then on maturity of FD, you get more interest than RD. In RD, interest is available on a quarterly or monthly basis, while in FD, interest is available on maturity. Money has to be deposited once in FD and after that there is no headache, but in RD money has to be paid continuously. By the way, in both the deposits, you can take a loan if needed.