Both these savings schemes are beneficial for those having a regular income stream. A recurring deposit earns interest from being a term deposit, while a SIP invests in a bucket of equity or debt instruments. The latter is the riskier of the two and is subject to market fluctuations. SIP offers better returns over the long-term investment horizon.  A recurring deposit gives assured returns and secures the deposited capital. However, premature withdrawal from RD could attract some penalties. Depending on your risk appetite and investment horizon, you can select either SIP or a recurring deposit.