Direct answer
Yes, a fixed deposit is generally better for lump sums because it earns interest on the entire principal amount from day one, whereas a recurring deposit is designed for smaller, periodic monthly contributions.
Standard retail banking interest calculation policies and financial product disclosures. For additional information about how interest is calculated on savings products, see the Consumer Financial Protection Bureau‘s guide to banking basics.
What this means for you
Yes, a fixed deposit is generally better for lump sums because it earns interest on the entire principal amount from day one, whereas a recurring deposit is designed for smaller, periodic monthly contributions.
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