Investment: If you want to invest for 5 years, then which scheme will be best FD or RD?

To save your earnings, there are many ways of investing in the market, in which there is the option of stocks to earn quick profits in the short term, and there are schemes like bank FD and RD for long-term investment. In such a situation, if you want to invest for at least 5 years, then both of these can prove to be better options for you. Let us understand where you can invest to earn more profit.

Talking about investing in FD, investors can invest a lump sum in it, and government as well as private banks also offer different interest rates for it in different periods. They offer different interests for senior citizens and for the common man. Generally, FD gives more interest than the RD scheme. At the same time, investment is made in it once and a fixed interest is given annually.

What is the RD scheme
On the one hand, investment in FD is done once. On the other hand, investors can also put a monthly amount in the RD scheme. This scheme has been started by the post office. The value of investment in this matures in 60 months, i.e., 5 years. Currently, it gives an annual interest of about 6.7 percent, which is calculated every quarter. The special thing about both FD and RD schemes is that there is no risk in them.

Which is better between FD and RD?

You get a fixed interest on both investment options. Interest on FD varies according to the bank. For example, a common man gets interest ranging from 3.05 percent to 6.60 percent on an SBI FD. At the same time, the bank offers interest up to 7.10 percent to senior citizens. In such a situation, if you deposit Rs 7 lakh in the FD of this bank, then the maximum you will get on it is Rs 9.66 lakh. On the other hand, the value of 5-year investment in RD scheme will be Rs 8.34 lakh.

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