SIP vs Recurring Deposit Calculator

RD is lower risk and suits short, definite goals. SIP in mutual funds suits long goals (7+ years) where you can accept volatility. Historically, equity SIP has often outpaced RD after tax over 10+ years, but there is no guarantee and you can face losses in bad markets.

Yes. Bank RD interest is taxable as per your income slab; TDS may apply above thresholds. Equity mutual fund taxation differs (LTCG rules on equity). Effective post-tax return on RD is often lower than the headline rate for those in higher tax brackets.

Yes. Many Indian investors keep emergency funds and near-term needs in FD/RD and use SIP for retirement, child's education, or other long horizons. Asset allocation should match goal date and risk capacity.