SIP vs RD vs FD: Which System Wins in 2025?

India’s favorite savings vehicles behave very differently. Here’s how to pick the right mix.

Liquidity & risk

• SIPs ride market volatility but beat inflation long-term.
• RDs offer guaranteed returns but limited upside.
• FDs deliver certainty yet penalize early exits.

Cash-flow fit

• Choose SIPs for long-term goals (5+ years).
• Use RDs for medium-term goals like travel or gadgets.
• Pick FDs when you need short-term parking with low risk.

Decision grid

• Diversify: 60% SIP, 25% RD, 15% FD for balanced builders.
• Review interest rates quarterly.
• Align payouts with big annual expenses.