Hello, friends, welcome. In today’s post, we are going to tell you the Difference Between FD and RD and what is FD? Are you also trying to get FD, but you are not aware of it, then you have come to the right place. You will also know how to make Fixed Deposit?
What Is the Difference Between FD And RD Today You Will Know Through This Post? We will explain it to you in straightforward language. I hope you like all our posts. Likewise, you continued to like every post on our blog.
Why FD?
In today’s modern time, it is essential to save money. Every person does some saving from their earned money; this money is significant for our future. Money is required anytime. FD is done keeping in view future expenses.
You must have heard about FD or the name of FD, and many people open FD account to fulfill their future needs. But to open an account on this, you should have complete information about how much interest you will get on FD, its benefits, and a lot of necessary information that is important to know.
So let us know Fixed Deposit’s information if you also want to open FD Account, then this post What Are FD And RD Account? If you read it from beginning to end, you will get complete information about it, and you will be able to open your account on it with the right information.
What is FD?
FD means that in which you have to deposit a certain amount of time. During this period, the bank pays interest on your Deposit. If you need money in a particular situation, this savings is useful in dealing with that situation, but FD withdrawal is not allowed before the scheduled time. But in exceptional circumstances, it can also be removed.
If you say in simple words, when a person deposits a certain amount of money in the bank for a specific time, it is called FD. Many banks in India are providing this facility. The amount deposited in FD is more than the amount deposited in Saving Account. FD is considered the safest.
FD Full Form
FD Full Form is FIXED DEPOSIT
FIXED DEPOSIT
Documents for FD
Some documents are required to open a Fixed Deposit Account, which is explained to you below.
- Address certificate
- Pan Card
- Aadhar Card
- Check for Cash Amount or FD of Rs.
- FD Form (Received through Bank)
- Passport size photo
How to do FD
Fixed Deposit is very easy to do. To open an account on this, you have to follow the steps given below. Know how to open an FD account
- You will have to bring the necessary documents to a nearby bank. You have to get Fixed Deposit information from the bank.
- After taking all the information, you will be given a form from the bank, which you have to fill correctly.
- The amount that is being deposited in Fixed Deposit or has to be deposited in Check Bank. After this, your FD will be given by the bank.
With this, you can deposit the amount deposited in Saving Account or Current Account through Internet Banking in Fixed Deposit Account. You can also open an FD account online from the bank’s website, and an FD account can also be opened through ATM or mobile banking.
Interest Rate on Fixed Deposit
The interest rate on Fixed Deposit varies from bank to bank. But there is not much difference among them. The interest rate on Fixed Deposit is higher than the current account or savings account. Shortly before, Fixed Deposit offered an interest rate of up to 15%. But currently, this interest rate has been reduced from 7% to 9%.
How Many Years FD will Double in Bank
Earlier, the amount deposited in the savings account was doubled in 4 to 5 years and now it takes 8 to 10 years to double the amount deposited in the savings account. Some banks also pay higher interest on more deposits. The rate of interest is higher than the inflation rate.
Benefits of FD Account
If you are opening your FD account, you also get its benefits, which are explained below.
- The amount you deposit in it can be broken even before time.
- Interest is also paid more on the amount deposited in FD.
- With Fixed Deposit, your money is safe.
- When your FD is completed, you can benefit more by renewing it.
- Simple FD can be income with interest every month.
How to Break FD
If you want to break FD for some reason, you can get your FD account closed offline and online in 2 ways. We learn further about both these methods.
1. By Applying to the Bank
You can also apply for closure of the FD account by going to the bank. For this, an application has to be given to the bank manager to open an account. In this application, you have to give the reason for closing the FD account; then, you have to submit this application to the bank. After this process is complete, your FD account will be closed. The amount deposited in the account is deposited in the bank account within 24 hours.
2. Online Application
If you do not want to close the FD account offline, you can also do this work online. You can also do this through Internet banking.
- Log in Bank Portal – Log in to your bank portal to close your online FD account.
- Click Fixed Deposit – After logging in, you will see Fixed Deposit’s option on the home page itself and click on it and go to your Account Details.
- Service Request: After this, the Service Request Section will appear and go to it and click on Premature Option.
- Click Proceed – Now select your FD Account and click on Proceed.
In this way, the request to close your FD account will reach the bank.
Can I Get monthly interest on a Fixed Deposit?
If you choose to get paid from time to time and monthly frequency, you can get interested monthly. When you invest your money in FD, you get interested in your principal amount, which you can get from time to time; by putting the required information in the FD monthly payout calculator of the Fixed Deposit, you can choose the frequency for the specified period And can know the returns received.
If you want a monthly income from your investment, you can choose to receive your interest payment every month. Monthly interest can be easily calculated using a fixed deposit calculator.
However, your interest rate changes depending on the frequency of your interest payment. The more time you take out your interest, the less interest you get. You can use the Bajaj Finance FD calculator to calculate your returns in advance so that you can plan your finance.
Also, Read – What is the MPIN Number in the Banking
What is RD?
RD is a perfect scheme to deposit a fixed amount every month. When the period is over, you get your amount with interest.
If you have opened an account for one year and are depositing 1000 rupees every month, your RD period will be completed, which means one year will be completed. The amount deposited every month gets mixed with interest.
RD Full Form –
RD Full Form is RECURRING DEPOSIT
RECURRING DEPOSIT
Recurring Deposit Interest Rate
The interest rate of RD is higher than the interest rate of a savings account. RD interest rates range from 6% to 9%. RD’s interest rate also varies with the duration, so whenever you get RD, it is essential to check how much time you will get more interest in RD.
The RD Account has a minimum duration of 6 months and a maximum of 10 years. The amount for opening an RD Account is 100 rupees in a bank, then 500 rupees in a bank and an RD account can be opened in some bank even with only 10 rupees.
Difference Between FD And RD
Many people do not understand that they should make Fixed Deposit or Recurring Deposit understand the difference.
- The amount has to be deposited simultaneously in Fixed Deposit. At the same time, Recurring Deposit requires a small amount to be paid in a set time.
- FD account can be opened from 7 days to 10 years. RD Account can be opened for a period of 6 months to 10 years.
- With more FD deposits, it becomes difficult to calculate the interest rate also gets locked. TDS is also deducted on a salary of more than Rs 10,000 in the RD Account, and the interest rate in RD remains the same for an extended period.
- The amount deposited in RD is considered more secure than the amount deposited in the FD account.
Fixed Deposit Calculator
When investing in a fixed deposit, the amount you deposit gets interested according to the current FD interest rate. This interest increases in a compound period and helps you increase your savings.
Investors can use Bajaj Finance Fixed Deposit Calculator to know their FD’s maturity amount, interest earned, and payment amount and plan their investment. Before starting an investment, you can determine the exact value of your investment.
How to Calculate the Maturity Amount of a Fixed Deposit?
You can use a fixed deposit calculator or term deposit calculator to get information on FD maturity amount. Just go to the FD calculator page and select your customer type; FD type means cumulative or noncumulative and your principal amount and duration. You will automatically see the principal’s interest and the Fixed Deposit’s total maturity amount for a fixed period.
You can use the Bajaj Finance FD calculator to find the maturity amount of your fixed deposits. Types of FD mean cumulative/noncumulative and interest rates may vary depending on the duration and principal. With the help of this calculator, you can know the maturity amount in a few minutes.
How is Fixed Deposit Interest Calculated?
The return on your fixed deposit investment is determined by your interest rates and the frequency of interest payments. These interest rates are compounded at a given time, and the formula used in the FD interest calculator is given below.
This is the Formula of FD calculation:
A = P (1 + r / n) ^ n * t
A is the maturity amount, P is the principal money, r is the interest rate, t is the number of years n is the compound interest frequency. Let’s understand this properly by using an example. Suppose you pay Rs. 3 in fixed deposits at an interest rate of 8% for three years. 1,00,000 are investing, which is compounded annually (n = 1). According to the given formula, you need to do the calculation like this:
A = 100000 * {[1+ (0.08 / 1)] ^ (1 * 3)}
A = 100000 * 1.25971
A = 125971
Thus, your final amount is Rs. Is 1,25,971. While doing this calculation manually, you can always evaluate your returns using the Bajaj Finance Fixed Deposit Calculator. All you have to do is enter your investment amount and duration, which will help you calculate the amount to be received at maturity.
What is SIP?
SIP means Systematic Investment Plan – It is a way to invest systematically or systematically in Mutual Funds.
Under the investment plan, you continuously invest in a Fixed Installment Mutual Fund every month. In simple words, it is like a Recurring Deposit Scheme deposited in a bank.
Under this, you deposit a certain amount in your favorite company’s Mutual Fund at regular intervals.
In SIP Investment, your bank account is linked to Mutual Fund’s SIP Scheme, and on the fixed date of every month, that money gets transferred from your Bank Account to SIP Scheme.
In this way, it is an Automated way to invest so that it becomes your habit to invest, and you do not have to think about it repeatedly.
How Can I Invest in SBI in SBI
For example, if you invest Rs.2000 in SBI’s SIP Scheme, then every month, Rs. 2000 rupees will be deducted and invested in SBI Mutual Fund.
SIP Investment is the only way to invest in mutual funds. You can invest in Mutual Fund either through the Lump Sum method or through SIP.
In Lump Sum Investments, you have to decide when to invest, how much to invest and which mutual fund to invest in, and market conditions also have to be taken care of in this regard.
In SIP, you invest a fixed amount continuously, which reduces your risk in the long term.
Conclusion
In today’s post, you know the Difference Between FD and RD, what is FD or RD, how to use the FD calculator, and along with it, you also know FD full form. We hope that the information given by us will be useful for you.
To know what is FD RD, we must take the help of this post. You will get to know better what this Recurring Deposit is through this post. Tell us how you liked this information by commenting.
