TDR vs STDR

 

Feature	TDR (Term Deposit Receipt)	STDR (Special Term Deposit Receipt)
Full Form	Term Deposit Receipt	Special Term Deposit Receipt
Type of Interest Payment	Periodic payout (monthly/quarterly/half-yearly/annually)	Cumulative (paid at maturity with compounding)
Payout Mode	Interest is credited regularly to the savings/current account	Interest is compounded quarterly and paid on maturity
Best Suited For	Individuals looking for regular income	Individuals looking for wealth accumulation
Tenure Options	Generally ranges from 7 days to 10 years	Same tenure as TDR (but commonly used for 1–10 years)
Interest Rate	Slightly lower than STDR due to periodic payout	Slightly higher due to compounding effect
Tax Deducted at Source (TDS)	Applicable if interest exceeds threshold	Same
Senior Citizen Benefits	Higher interest rates may apply	Same
Premature Withdrawal	Allowed (may have penalty)	Allowed (may have penalty)
Auto Renewal Option	Available	Available
Nomination Facility	Available	Available

---

🎯 Key Difference:

• TDR gives regular interest payouts—good for retirees or those needing steady income.
• STDR gives lump sum with compounded interest—good for long-term savings goals.

---

💡 Example:

If you invest ₹1,00,000 for 5 years at 7%:

• TDR: You get ~₹7,000 per year credited (simple interest).
• STDR: You get ~₹1,40,255 on maturity due to compounding (quarterly compounding).