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| Feature | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| Investment Type | One-time lump sum | Monthly installments |
| Minimum Amount | ₹1,000 (varies by bank) | ₹500/month |
| Interest Rate | Up to 9.5% p.a. | Up to 8.5% p.a. |
| Tenure | 7 days – 10 years | 6 months – 10 years |
| Best For | Lump sum investors | Regular monthly savers |
| Loan Facility | Up to 90% of FD value | Up to 80–90% (select banks) |
| Tax Deduction | 5-yr Tax Saver FD under 80C | Not eligible under 80C |