Recurring Deposit (RD) and Fixed Deposit (FD) introduced by banks are the most popular investment options in Nepal. The main advantage of investing in FD and RDs is to earn fixed returns over a fixed period of time without taking any risk. Both FD and RDs can be opened in Nepal by visiting the bank branch. It can also be opened through mobile banking apps or using internet banking if you have a savings account maintained at the bank you want to apply for RD/FD.
With many similar features and benefits of these accounts like stable returns, capital protection people get confused which saving option they should go with. So let’s understand its with this blog.
|Frequency of deposit
|For a fixed deposit, you have to deposit the amount in one lump sum.
|For Recurring Deposits you can deposit funds at regular intervals.
|Three months to ten years
|Three months, six months to ten years
|Who can open
|Any person having an account in a bank
|People who have a regular source of income
|Amount to be deposited
|Minimum of Rs.10,000 (It varies from bank to bank)
|Minimum Rs.500 (It varies from bank to bank)
|Interest payments are available monthly or quarterly.
|Interest payments on RD are made at the time of maturity.
|Withdrawal can be done after the tenure expires. Premature withdrawal can attract penal charges.
|Withdrawal can be done after the tenure expires. But some banks allow premature withdrawal in Nepal while some can attract penal charges on premature withdrawal.
|FDs have an auto renewal option. It is automatically renewed on maturity of the deposit.
|Auto renewal option is not available in RDs.
|Ideally Suited For
|Who doesn't wants to take a risk and want to invest a lump sum amount.
|Who doesn't wants to take a risk and want to invest small amounts periodically.
Common Features of FD and RD
RDs and FDs are popular among people due to some common features. Here is a brief about them.
So now after knowing all the key differences between RD and FD you can easily choose the best suited option for you.
How will Saral Banking Sewa help you ?
Saral Banking Sewa is one of the leading bank comparison sites in Nepal. You will be able to understand, compare or get more information about loan products, deposit accounts, fixed deposits and recurring deposits and credit card of all the commercial and development banks of Nepal by logging into the Saral Banking Sewa. Also, you can contact us via phone call, messenger, and WhatsApp for any further queries.
Telephone No.: 01-5269107
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