SBI RD Vs Post Office RD: Comparing Returns On Monthly Investments Of Rs 1,000, Rs 3,000, Rs 5,000, & Rs 7,000 Over 5 Years
SBI RD Vs Post Office RD : When it comes to low-risk investment options, recurring deposits (RDs) have been a popular choice among Indian investors. Offering fixed returns with the benefit of monthly contributions, RDs provide a simple yet effective way to build a corpus over time. Among the various RD schemes available, the State Bank of India (SBI) Har Ghar Lakhpati scheme and the Post Office National Savings Recurring Deposit are two prominent options. But how do they compare when it comes to returns on monthly investments of Rs 1,000, Rs 3,000, Rs 5,000, and Rs 7,000? Let’s explore the key differences and calculate which scheme offers higher maturity amounts.
What is a Recurring Deposit?
A recurring deposit is a fixed investment scheme that allows you to deposit a fixed amount every month for a pre-determined tenure. At the end of the tenure, the investor receives the principal amount along with the accrued interest. The main allure of RDs lies in the discipline they instil for savings, and they are considered low-risk options, making them suitable for conservative investors. RDs are available at both banks and post offices, with varied tenures and interest rates.
SBI Har Ghar Lakhpati RD: Key Features
SBI's Har Ghar Lakhpati RD is a unique offering designed to help individuals accumulate up to Rs 1 lakh or more over a period by making small monthly investments. The scheme is flexible in terms of tenure, with customers choosing between 5 to 10 years. The current interest rate for SBI RDs is 6.5% per annum for tenures ranging between five and ten years.
Post Office National Savings RD: Key Features
The Post Office National Savings Recurring Deposit is another trusted option for regular investors. With a fixed interest rate of 6.7% per annum, it is slightly higher than the SBI RD’s rate. The tenure for this RD is fixed at 5 years, but it can be extended for another 5 years if needed. The minimum monthly deposit amount starts at Rs 100, with no upper limit.
Interest Rates: SBI vs Post Office RD
The interest rates offered by both schemes are competitive, with the Post Office RD offering a slightly higher rate of 6.7% per annum for a 5-year term, compared to SBI’s 6.5%. While this difference may seem small, over the course of several years, it can result in significantly higher returns, especially for higher monthly investments.
Returns on Monthly Investments: A Comparison
Let’s break down the returns from both schemes based on different monthly investments:
- For Rs 1,000 Monthly Investment
- SBI Har Ghar Lakhpati RD: The estimated maturity amount after 5 years would be Rs 7,09,902, with a return of Rs 1,09,902.
- Post Office National Savings RD: The estimated maturity amount would be Rs 7,13,659, offering a return of Rs 1,13,659.
- The Post Office scheme provides a slightly higher return by approximately Rs 3,757.
- For Rs 3,000 Monthly Investment
- SBI Har Ghar Lakhpati RD: The estimated maturity amount after 5 years would be Rs 21,29,732, with a return of Rs 3,29,723.
- Post Office National Savings RD: The estimated maturity amount would be Rs 21,40,974, offering a return of Rs 3,40,974.
- Again, the Post Office RD offers a higher maturity amount, with a difference of around Rs 11,242.
- For Rs 5,000 Monthly Investment
- SBI Har Ghar Lakhpati RD: The estimated maturity amount after 5 years would be Rs 35,49,532, with a return of Rs 5,49,532.
- Post Office National Savings RD: The estimated maturity amount would be Rs 35,68,291, offering a return of Rs 5,68,291.
- With a Rs 5,000 investment, the difference is Rs 18,759 in favour of the Post Office RD.
- For Rs 7,000 Monthly Investment
- SBI Har Ghar Lakhpati RD: The estimated maturity amount after 5 years would be Rs 49,69,356, with a return of Rs 7,69,356.
- Post Office National Savings RD: The estimated maturity amount would be Rs 49,95,609, offering a return of Rs 7,95,609.
- The Post Office RD offers a return that is approximately Rs 26,253 higher.
Although both the SBI Har Ghar Lakhpati RD and the Post Office National Savings RD are reliable and low-risk investment options, the Post Office RD marginally outperforms the SBI scheme across all investment amounts. Whether you are investing Rs 1,000, Rs 3,000, Rs 5,000, or Rs 7,000 monthly, the Post Office RD offers slightly higher returns.
It’s essential to consider your financial goals and the tenure that suits you before making a choice between the two. While the Post Office RD provides a slightly better return, the flexibility offered by SBI’s Har Ghar Lakhpati scheme might be more appealing for some investors.
Disclaimer: The information provided above is for informational purposes only and should not be construed as investment advice. Please conduct thorough research or consult a financial expert before making any investment decisions.
Next Story