Recurring Deposits VS Mutual funds
The interest rates on RDs depend on which category you fall under and your choice between different banks.The current interest rates available from different banks range between 4.5% and 7.90% per annum.
| Factor | Recurring Deposit | Mutual Funds-Robo Invest |
|---|---|---|
| Typical Returns | 5-7% | 7-13% |
| Typical Net Return (Post Taxes & Penalties) |
| 7-12% |
| Penalty/Exit Load | 1-2% | 0% |
| Tax | As Per Tax Slab |
|
| Mode Of Investment | Monthly Automatic | Bi-Weekly/ Monthly Automatic |
| Compounding | Quarterly/ Yearly | Daily |
| Lockin Period | Fixed Term/ Premature With Penalty | NIL |
| Partial Withdrawal | Sometimes | Always Allowed |