Post Office vs SBI RD Interest Rate: Which scheme is best for you?

Post Office vs SBI RD Interest Rate: Which scheme is best for you?

Business Desk. Post Office vs SBI RD Interest Rate: Recurring Deposit i.e. RD is one of the most popular options for safe investment. In this, you have to deposit the monthly installment every month like a mutual fund SIP and this installment is decided at the time of starting the RD. You get the money on maturity as per your chosen tenure.

At the same time, when it comes to getting RD done, people give preference to the country’s largest bank SBI and Post Office.

Today in this article we are going to compare the RD interest rates of Post Office and SBI to see which one is giving more interest to the investors.

Interest rate on SBI RD

SBI continues to offer RD from one to 10 years. One can start investing with Rs 100 per month and can increase the investment in multiples of 10.

SBI is giving interest ranging from 6.50 percent to 7.00 percent to general investors and 7.00 percent to 7.50 percent to senior citizens.

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Latest interest rate on SBI RD

• On RDs of 1 year to less than 2 years, 6.80 percent interest is being given to general investors and 7.30 percent interest to senior citizens.
• On RDs of 2 years to less than 3 years, general investors are getting 7.00 percent interest and senior citizens are getting 7.50 percent interest.
• On RDs of 3 years to less than 5 years, 6.50 percent interest is being given to general investors and 7.00 percent interest to senior citizens.
• On RD ranging from 5 years to 10 years, general investors are getting 6.50 percent interest and senior citizens are getting 7.50 percent interest.

Interest rate on Post Office RD

Post office RD comes with a maturity of 5 years. Investment in this can be started from Rs 100 and you can increase it in multiples of 10. Senior citizens are not being given additional interest in Post Office RD. 6.5 percent interest is being received in the RD of the post office.

Post Office Rd

TDS of 10 percent is levied on the interest received on RD. However, this is applicable only if the interest on RD is more than Rs 10,000.

Which scheme is better

If you invest in Post Office RD then it will have a lock in period of 5 years. This means that you will not be able to withdraw money before 5 years. Whereas by getting RD done in SBI, you will be able to choose as per your choice for how many years you want to get RD done.

Here you will get the option of getting RD for 1 to 10 years. If we compare the RD scheme of Post Office and SBI, then both are great savings schemes, but in terms of interest rate, SBI RD scheme is a better scheme. If you are a senior citizen, then you are getting the benefit of additional 0.50 percent interest rate on SBI’s RD scheme.

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