I am planning for saving some excess funds.

Option 1:
Open recurring deposit for 10,000 for a period of 6 months. After 6 months I will get a total of 61000 including interest of 1000.

Option 2:
Open a Fixed deposit of 10,000 in every month for next six months.

I prefer Option 1, but should I go for Option 2.

  • 1
    In no part of the world, is 10K/month USD, a small amount. – Pete B. Aug 5 '16 at 13:38
  • 1
    OP is in India. I don't know the exact exchange rate but I think it's closer to Yen than US dollars. – JTP - Apologise to Monica Aug 5 '16 at 17:47
  • India Rupies is about 60 -70 per US $, so 10000 is ~150 US $ – Aganju Aug 6 '16 at 22:00

This depends on when exactly you want the month back. If you need the money back at the end of 6 months, then option 1 is advisable. It is easy to set-up an Recurring Deposit.

If you don't need the money immediately, generally the FD rates are better than RD rates. So creating FD's every month will result in more money. However you would have to ensure that you create this every month, so there is more effort.

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