Post Office RD vs SBI RD: Where will you get more money after 10 years by depositing ₹10,000 monthly? Check the full calculation..

If you wish to build a substantial fund for the future by saving small amounts regularly without risk, a Recurring Deposit (RD) is an excellent option. Both the Post Office and the State Bank of India (SBI) offer RD facilities. However, since their interest rates differ, the maturity proceeds also vary. Let us examine which scheme yields higher returns over 10 years if an investor deposits ₹10,000 monthly.

**Post Office RD: Interest and Rules**
The Post Office RD currently offers an annual interest rate of 6.7%. This interest is compounded quarterly. The scheme has a base tenure of 5 years, but investors can choose to extend it beyond maturity. Being government-backed, it is considered one of the safest investment options.

**SBI RD Interest**
SBI's standard RD currently offers an annual interest rate of 6.5%. Senior citizens are offered a higher rate. Like the Post Office scheme, this involves depositing a fixed amount monthly, with the total corpus—including interest—paid out upon completion of the tenure.

**Investment Outcome for a Monthly Deposit of ₹10,000**
If an individual deposits ₹10,000 every month for 10 years—

*   Monthly investment: ₹10,000
*   Total tenure: 10 years (120 months)
*   Total deposited amount: ₹12,00,000

Now, let us look at the estimated maturity amount for both schemes.
**Post Office RD Calculation**
*   Monthly investment: ₹10,000
*   Total investment: ₹12,00,000
*   Interest rate: 6.7% per annum

Estimated maturity amount: Approximately ₹17.2 lakh

This means the investor could earn approximately ₹5.2 lakh in interest. SBI RD Calculation
* Monthly investment: ₹10,000
* Total investment: ₹12,00,000
* Interest rate: 6.5% per annum

Estimated maturity amount: Approximately ₹17 lakh

This means the investor could earn around ₹5 lakh in interest.

Which offers better returns?
Comparing based on current interest rates, investing in a Post Office RD could yield a maturity amount approximately ₹20,000 to ₹30,000 higher than an SBI RD. The primary reason for this is that the interest rate for Post Office RDs is slightly higher than that of SBI.

Points to consider before investing
* It is essential to deposit the RD installment on time every month.
* Interest rates are subject to change from time to time.
* Rules regarding premature account closure may vary.
* Make your investment decision only after considering your needs, the investment tenure, and the expected returns.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.