Which investment in SBI RD or Post Office RD would provide a higher return on your investment? grasp mathematics

 Which investment in SBI RD or Post Office RD would provide a higher return on your investment? grasp mathematics

Which investment in SBI RD or Post Office RD would provide a higher return on your investment? grasp mathematics

SBI RD vs. Post Office RD: In this comparison, both SBI RD and Post Office RD have been made. Tell us where you will make the most money if you choose to invest as well.

Recently, the Post Office raised the interest rates on its Recurring Deposits (RDs). The value has been raised to 6.7 from 6.5. However, you must manage RD for at least five years at the post office. On the other hand, if you begin an RD plan with a bank, you may choose a term of 1, 2, 3, 4, or 5 years, according on your preferences. State Bank of India (SBI), the biggest public sector bank in India, offers you superior interest rates in addition to the ability to take out RDs for varying lengths of time. Allow me to explain: at the time of maturity, interest is refunded to you together with the set amount you are required to pay into RD each month. Similar to the post office, you may start investing with Rs 100 per month at SBI, and there is no maximum amount you can invest.

Which interest rates does SBI offer?

For deposits made between one and two years, the rate is 6.80%; for senior persons, it is 7.30%.

The rate is 7.00% for deposits made between two and three years, and 7.50% for elderly persons.

6.50% interest will be paid on deposits made for three to five years, while 7.00% interest will be paid to elderly persons.

Senior folks will get 7.50% interest while savings lasting five to ten years will provide 6.50% interest.

RD vs. Post Office SBI

In case we compare the Reverse Mortgage (RD) offered by Post Office and SBI, the former offers interest at a rate of 6.7% for a five-year RD, while the latter offers 6.8% interest on a one-year RD, which is more than that of Post Office. You may get up to 7% interest on RD if you complete it within two to three years.

However, post office is now a preferable solution if you want to start RD for five years. At the post office, you will get interest at a rate of 6.7%. In contrast, SBI offers a five-year RD at an interest rate of 6.5 percent.

FD is possible for the quantity of RD.

When establishing a savings account with SBI, you have two choices. You have the option to convert your amount into FD at maturity or to accept the whole amount upon maturity in this case. Whatever choice you choose determines how the task is completed. These are your options:

Issue IOI: If you choose this option, the money is deposited into your account at maturity.

Issue STDR: If you choose this option, the whole amount of your RD is redeposited in your name as a fixed deposit for the duration of your choice.