Savers rely heavily on RD ie Recurring Deposit Scheme. You can open your RD account in any bank or post office. The interest rate available in RD in different banks is different. You can open your RD account in the country’s largest bank State Bank of India and Post Office. In RD scheme, we get the benefit of a fixed rate of interest on depositing fixed installments. Let us tell you that the installment amount once fixed in an RD account cannot be changed. At the end of the term of the RD plan, the customer gets the maturity amount. At the time of maturity, the invested amount is paid back to the user along with accumulated interest. Apart from this, you can also invest your money in the RD scheme of the post office. Here we are going to tell you about the difference between Post Office RD and SBI RD.
Post Office RD Scheme
You can open your account under the post office RD scheme with as little as Rs 100. There is no maximum limit on the amount you can deposit in the RD scheme. Any adult Indian person can get his account opened in the RD scheme of the post office. A guardian account can be opened on behalf of a minor by his guardian.
If you have deposited your 12 installments in the Post Office RD scheme, then you can also take a loan from it. With the RD of the post office, you can take a loan of up to 50 percent of the amount deposited in your account. At present, interest on Post Office RD is available at the rate of 5.8 percent.
State Bank RD
If you open your account in the RD scheme of the country’s largest bank, State Bank of India, then in the RD scheme of the bank, different interest rates are offered on the normal account and for senior citizens. Senior citizens get the benefit of higher interest rate as compared to normal RD account. SBI RD interest rates vary between 5 per cent to 5.4 per cent for the general public and an additional interest rate hike of 50 basis points for senior citizens.
These interest rates are effective from 8 January 2021. The maturity period of State Bank Recurring Deposit ranges from 1 year to 10 years. In State Bank’s RD scheme, the minimum monthly investment amount is Rs 100 in multiples of Rs 10. There is no upper limit on the amount to be invested.
