Banks use quarterly compounding for most RD products — here's the exact formula to verify your maturity amount independently. Includes monthly vs quarterly compounding comparison, effective annual rate conversion, and how premature withdrawal penalties are calculated.
RDs guarantee returns; SIPs offer higher potential returns with market risk; regular savings accounts provide full liquidity. Here's a comparison of all three by risk, return, tax treatment, and suitable horizon — including why rupee cost averaging makes SIPs particularly effective in volatile markets.
Learn why RD interest is lower than FD at the same rate, how to match an RD to a specific savings goal, tactics for better returns through staggered maturities, and how to use a free RD calculator.
Learn how recurring deposit interest is calculated, how an RD compares to an FD or SIP, and use a free RD calculator to find your exact maturity amount before opening an account.
