SBI RD vs Post Office RD: When it comes to saving money, the Recurring Deposit Scheme still holds its appeal, with options available in both banks and post offices. This scheme entails depositing a fixed sum each month into the RD account, with the bank or post office providing a predetermined interest rate. Upon maturity, customers receive a lump sum amount. If you're considering investing in the State Bank of India (SBI) or the Post Office's RD scheme, let's delve into the interest rates to determine which one might be more beneficial.
SBI's RD Scheme: SBI offers a Recurring Deposit Scheme with tenures ranging from 1 to 10 years. Senior citizens currently enjoy an additional 0.50 percent interest rate. For general customers, the interest rates are as follows:
• 1 to 2 years: 6.80 percent
• 2 to 3 years: 7.00 percent
• 3 to 4 years: 6.50 percent
• 5 to 10 years: 6.50 percent
For senior citizens, the rates are higher, starting from 7.30 percent for 1 to 2 years and going up to 7.00 percent for 5 to 10 years.
Post Office's RD Scheme: The Post Office's Recurring Deposit Scheme offers a fixed tenure of 5 years, with a standard interest rate of 6.5 percent. Unlike banks, there's no additional interest benefit for senior citizens in the post office RD scheme. This scheme allows for both single and joint account openings.
Choosing the Right Scheme: While both the Post Office and SBI offer excellent RD schemes, SBI's RD scheme emerges as the more advantageous option in terms of interest rates. This is especially true for senior citizens, who can enjoy an extra 0.50 percent interest rate on SBI's RD scheme. If you're aiming for better returns on your investment, SBI's scheme might be the better choice for you.
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