RD vs SIP

Compare Recurring Deposits and SIP investments post-tax

Investment Settings

Monthly Deposit

Tenure

RD Interest Rate (% p.a.)

SIP Exp. Return (% p.a.)

RD Tax Slab

SIP Gains Tax Rate (%)

RD interest faces annual tax outflows, whereas SIP/Mutual Funds allow your entire gains to compound, resulting in a higher XIRR for the same pre-tax return.

Better Investment Choice

SIP (Mutual Fund)

+₹83,990

XIRR Advantage: 5.93%

Net Maturity

₹7,07,145

Post-Tax XIRR

5.05%

Invested₹6,00,000

Gross Interest+₹1,19,050

Tax Paid (TDS + Extra)-₹35,715

SIP

Winner

Net Maturity

₹7,91,134

Post-Tax XIRR

10.98%

Invested₹6,00,000

Gross Gains+₹2,24,864

Tax at Redemption-₹33,730

Year-wise Comparison Table

Year	Deposited	Interest	TDS (10%)	Extra Tax	Closing
Year 1	₹1,20,000	+₹4,649	-₹465	-₹930	₹1,24,184
Year 2	₹1,20,000	+₹13,626	-₹1,363	-₹2,725	₹2,56,447
Year 3	₹1,20,000	+₹23,187	-₹2,319	-₹4,637	₹3,97,316
Year 4	₹1,20,000	+₹33,371	-₹3,337	-₹6,674	₹5,47,350
Year 5	₹1,20,000	+₹44,217	-₹4,422	-₹8,843	₹7,07,145