Fixed Deposits / Recurring Deposits

Fixed Deposits (FDs) and Recurring Deposits (RDs) are traditional savings instruments that offer stable and predictable returns. In a fixed deposit, a lump sum amount is invested for a specified tenure at a predetermined interest rate. In contrast, a recurring deposit allows individuals to invest a fixed amount regularly over a chosen period. Both options are generally considered low-risk and are suitable for conservative investors seeking capital preservation and assured returns. They are often used for short- to medium-term financial goals and provide liquidity options, although premature withdrawal may involve penalties.