Recurring deposits allow investors to save monthly with minimum deposits of Rs. 100 in banks or Rs. 10 in post offices over periods of 6 months to 10 years. They can be used to manage financial goals for all resident Indians, HUFs, and NRIs using NRE accounts when only small monthly sums can be invested, while fixed deposits provide higher returns and are better for lump sum investing.

3.  The mode of investment in recurring deposit
is through monthly savings
 Only banks and post offices offer recurring
deposit schemes in India
 The term of recurring deposit scheme varies
from 6 months to 10 years
 A minimum deposit of Rs. 100 is accepted by
most banks in India, however, one can also
invest with Rs. 10 through post offices

4.  All resident Indians can invest in recurring
deposit schemes
 HUFs (Hindu Undivided Family) can also invest
in RD schemes
 NRIs can also open an RD scheme through
their NRE account in banks but not in post
offices

5.  Like Recurring Deposit, Fixed Deposit is also
available in banks
 Both the products offer same taxability
 A fixed deposit gives more income than a
recurring deposit
 Invest in a Recurring Deposit when you do
not have lumpsum amount to invest as this
will help you manage your financial goals
easily
 If there is lumpsum amount then investing in
a fixed deposit would be a better choice