Assuming the maturity period of 5 years, then the customer will get a maximum return of 5.60 percent. In this way, if Rs 10,000 is deposited every month in SBI RD, then Rs 6.93 lakh can be easily deposited in 5 years.
State Bank Recurring Deposit or Post Office Recurring Deposit, both are the best means of savings in themselves. Lakhs of rupees can be easily raised by investing money in such recurring deposit schemes. Recurring deposits are generally operated for 12 months to 10 years. The specialty of this scheme is its interest rate in which better returns are given to the customers without any risk. The money deposited in RD is guaranteed by the government scheme DICGC. That is, if the customer’s money sinks, then the government will compensate for it.
If you want to earn Rs 7 lakh from recurring deposit scheme, then we can take the example of a 5 year account. In this the first example can be seen of State Bank RD.
SBI RD
State Bank RD is run from 12 months to 120 months. Account can be opened by depositing at least Rs 100 in it. One can deposit Rs 100 for the first time and then invest in multiples of Rs 10. Loan, nomination, OD, account transfer facility is provided on SBI RD account. In SBI RD, interest is given from 5.45 percent to 5.65 percent to the common depositor and 5.95 to 6.45 percent to the senior citizen.
Assuming the maturity period of 5 years, then the customer will get a maximum return of 5.60 percent. In this way, if Rs 10,000 is deposited every month, then Rs 6.93 lakh can be easily deposited in 5 years. Additional 0.50 percent interest will be given to senior citizens. In this way, senior citizens will get Rs 7.02 lakh in 5 years. They also have to deposit only Rs 10,000 in a month.
Post Office RD
Post Office RD comes for a period of 5 years. Its account can be opened with a minimum of Rs 100. There is no limit on the maximum deposit in the account. Both single and joint accounts can be opened. Loan can also be taken against post office RD. Interest is available on Post Office RD at the rate of 5.8% and it gets converted into quarterly compound interest. If a person deposits Rs 10,000 every month, then after 5 years Rs 6.96 lakh will be accumulated. No additional interest is paid to senior citizens in Post Office RD.
In this way, if senior citizens want to earn better than RD, then SBI RD will be good for them as they get additional interest. But if senior citizens want to invest in Post Office RD, they will not get the benefit of any additional interest.
