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Deposits: the safe end of the shelf

What do an FD and an RD actually pay, and what is the part nobody mentions?

4 steps · Asset classes

The path

  1. Calculate

    FD Calculator

    The simplest instrument there is, and the baseline every riskier one has to beat.

  2. Calculate

    RD Calculator

    Monthly deposits instead of one lump sum, which changes the answer more than most people expect.

  3. Read

    How RD interest is calculated, and why it looks too small

    Each instalment earns for a different length of time. This is why an RD pays less than an FD at the same rate.

  4. Read

    Real returns — why you divide, not subtract

    Read this again with deposit rates in mind. It is where the safe end stops looking safe.

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After this one

Equity and mutual funds

If you invest monthly instead of all at once, are you better off — and what are you actually paying for?