While you earn a competitive rate of return from RDs as compared to FDs, the maturity amount is greater in Fixed Deposit as interest is compounded quarterly. However, not everyone has a lumpsum amount to reap from FDs. The suitability of the financial product is primarily adjudged based on the profile of the depositor. If you have irregular income, RD is more suitable; however, with a surplus amount you might want an FD on your name. Both are relatively safer than SIPs as they offer a fixed return on the plan.