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Fixed deposit and recurring deposit comparison and excel calculator

Now a day’s interest rates are very fluctuating and RBI recently change the bank rate. So many people want to lock their money by depositing in the banks. But always there is a choice of fixed deposit or recurring deposit.

When we compare both of them, both have some advantages and disadvantages too. Like in fixed deposit, the interest income is always high compare to recurring deposit.  Whereas recurring deposit has no TDS rule. Some of the features of fixed as well as recurring deposit are as follows.

Fixed deposit
- Always give higher return compare to recurring deposit as you need to lock the entire amount in starting and all the amount fetch interest.

- The longer the amount, maximum the interest income.

- TDS will deduct if the interest income exceeds Rs. 10000 in a year. Investor will get the balance amount after deducting tax deduction at source.

- FDs are always advised when you have cash in hand.

Recurring deposit
In this scheme a fixed amount needs to submit in the account like the EMI and after the tenure, you will get entire amount with compound interest. Features are as follows.

- Both fixed deposit and recurring deposit gives same rate of interest on deposits.

- No TDS deduction.

- However the interest earned is not tax free and always taxable.

- It is advisable when one can save a certain amount every month and has not big cash in hand.
Interest calculation is as follows in this sheet.

Tags-recurring deposit calculator,fixed deposit calculator,rd calculator,fd calculator,fd vs rd,comparison between rd and fd,what is rd,income tax treatment of rd

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  1. pls provide download link

  2. can I download it in excel

    pls reply at : krishant3@gmail.com


  3. How to Download This Excel sheet to my PC

  4. But RD is also going to fetch the same interest as Fixed Deposit, for the amount invested Per Month. The only difference is the no of months of interest, that is being provided for each Installment.

    There are 2 added advantage for a Recurring Deposit over a fixed deposit.

    1. If you are going to invest a sum, say 10000 on a fixed deposit of short tenure like 30 days, 60 days, 90 days etc, its interest rate is lesser like 7.5, 7.75,8

    Whereas in RD, if you invest in RD, all the installments is going to be provided interest as per the Fixed rate. For example, the last 3 months of a RD is similar to as above statement. However all 3 months it will get a fixed rate like 8.5,8.5,8.5

    2. No TDS on RD. As per Govt Rule, both the Interest Earned on FDs and RDs are taxable and need to be shown in ITR.

    But, the flaw on FDs are It is captured TDS and if the interest earned + your earnings of the annum is more than the non taxable limit, then you have to again pay Tax for the interest earned.
    Hence you are double taxed on FDs unless you provide Form 15G/H.

    So, RDs have an added advantage over the Fixed Deposits.

  5. please send free download excel base -"Fixed deposit and recurring deposit comparison and excel calculator" for daily personal use in banking transaction
    My email id- jagdish.pevekar@yahoo.co.in