Post office FD vs RD: Fixed deposit account is called National Saving Time Deposit Account in Post Office. Here you can open an FD account for at least 1000 rupees.
Post office FD vs RD: There are many options to invest in post office. Here you can also invest in fixed deposits i.e. FD and Post office Recurring Deposit. If you are thinking of investing in either of these for a long time, then you should do homework a little earlier. If we make a post office FD for five years and make a recurring deposit for five years, then we try to understand here how much return is received in both.
National Savings Time Deposit Account (TD) Fixed Deposit for 5 years in Post Office
Fixed deposit account is called National Saving Time Deposit Account in the post office. Here you can open an FD account for at least 1000 rupees and can get FD of money in multiple of 100 as desired. There is no limit to the amount in this.
According to the information given on India Post’s website, you can get FD for 1 year, 2 years, 3 years and 5 years here. The interest rate is 5.5 percent per annum for one to three years. The annual interest rate for a five-year FD is currently 6.7 percent. That is, if you get FD for five years, you will get an amount of 6.7 percent interest as a return.
Post Office Recurring Deposit National Savings Recurring Deposit Account (RD)
You can get a recurring deposit for five years in the post office. In this, you have to deposit at least 100 rupees every month. You can invest any amount in a multiple of 10 rupees.
There is no limit to invest in it either. Currently the interest rate on post office recurring deposit (5 years) is 5.8 percent per annum. The interest rate is calculated every quarter. After maturity after five years, the account can be extended even further.