SIP vs Recurring Deposit (RD)

Both are monthly investments — but which builds more wealth? Compare SIP mutual funds vs bank/post office RD with real numbers and tax impact.

Comparison Settings

₹5,000
10 years
12%
5.8%

Maturity Value Comparison

SIP vs RD Across Different Horizons

Key Differences

Returns10-14% (market-linked)5-7% (fixed)
RiskModerate-HighZero (govt-backed for PO)
TaxLTCG 12.5% (₹1.25L exempt)Slab rate on interest
LiquidityRedeem anytime (exit load may apply)Penalty on premature closure
Minimum₹500/month₹100/month (PO RD)
Best ForLong-term goals (5+ years)Short-term goals (1-3 years)
Disclaimer: This comparison is for educational purposes. SIP returns are market-linked. RD rates vary by bank. Tax calculations assume 30% slab. Consult a financial advisor.