What is the difference between RD and FD in banks?
What are merits and demerits of both?
Thank you for the awareness you create and sharing information to us.
FDs are used when an investor has a large amount and wants to invest it at once. In the case of RD, he attempts to invest in regular intervals on a monthly or quarterly basis. It is completely upon the investor to opt for FD or RD in mutual fund companies like ICICI Prudential. Both of them provide different maturity dates based on the investor’s requirement. Returns received in both are taxed according to the investor’s tax slab.
ICICI Prudential offers FDs and RDs? ICICI Bank offers such products but not ICICI Prudential LIfe or Mutual fund not offers.
Sachin-You use FDs when you have lump sum and want to invest that in one go. Whereas in case of RD, you try to invest at regular interval like monthly or quarterly. So this is the convenience of your own which you have to decide. If you have lump sum then go for FD and you want to invest monthly then go for RD. Both offers different maturity date based on your requirement.
Return received from both are taxable according to your tax slab.