Power of compounding-
Try to understand it, why and how the compounding is most effective and how it works.
It can be very useful for the investor who invests for a longer period as interest on interest is paid here that boosts the invested amount.
A sum of amount is fixed for a period which earns a higher rate of interest than the rate of interest given in saving bank account.
More beneficial as amount is paid at once, compounding interest is paid here.
Can be renewed in case you don’t want to withdraw the money, interest will paid as per the existing rate of interest.
In this deposit you are not supposed to pay the amount at a time,here a fixed amount you have to pay every month till the period of maturity is over.
Final maturity amount is less as compared to fixed deposit, as the amount is paid in installment.
Here you dont have the facility to renew the RD,you need to withdraw the money once the period is over.