Setting aside a fixed amount of money every month specifically for savings or investment is the best way for wealth maximization. If the question where to invest arises, then everybody probably recommend Recurring Deposits (RD) of banks. For people willing to invest a fixed amount every month rather than a single time investment of huge amount, there are many alternatives which are available and offer potentially higher returns. One such alternative is the Systematic Investment Plan (SIP) which is offered by mutual fund houses. The product works same as Recurring Deposit of bank, difference being SIP’s invests in capital markets which include equity and debt instruments. SIP and RD are two popular savings plans among retail investors, which serve the purpose of long-term wealth creation. SIP is an investment plan in mutual funds, on the other hand, RD is a recurring deposit in banks. Again arises a question, which is better RD or SIP?. There lies the requirement of comparison of RD and SIP. To make prudent decision, investors should evaluate the differences between SIP and RD. So the main aim of this paper is to aware the people about the differences between the systematic investment plan and recurring deposit to achieve their long term financial goals and maximize their wealth.