Bank RD VS SIP: In today’s time many options are available in the market to invest money, but if you want to invest Rs 5000 per month. So today we will tell you which option is best for this.
Bank RD VS SIP: In today’s time many options are available in the market to invest money, but if you want to invest Rs 5000 per month. So today we will tell you which option is best for this. You can invest money in RD or SIP, but where will you get the benefit of more interest, let us tell you.
Fixed interest is available in RD
Likes to invest in schemes like Recurring Deposit (RD) or Fixed Deposit (FD) because in this you get guaranteed returns. At the same time, the amount of interest in SIP is not fixed.
How much interest will be available in post office RD?
If you invest Rs 5000 in RD, then you will get the benefit of interest at the rate of 5.8 per cent. According to the RD calculator, if you have invested Rs 5000 per month, then accordingly a fund of Rs 3 lakh is formed, in which you will get Rs 48,480 as interest. That means after 5 years you will get Rs.3,48,480.
How much will you get on investing in SIP?
If you do SIP of Rs 5000 per month for 5 years, then you will have to invest a total of Rs 3 lakh in it. On the other hand, if we talk about the rate of interest, then on an average you get the benefit of interest at the rate of 12 percent, in which you will get Rs 1,12,432, thus after 5 years you will get Rs 4,12,432. Apart from this, the rate of interest is not fixed, it can be 14 to 18 percent according to the returns of the market. So according to this, SIP is the best option as compared to RD, but there is also risk in it.
Advantages of RD-
- Investing in RD scheme is a great option for salaried individuals as they do not have to invest a lump sum amount at one go as is the case with fixed deposits.
- In RD investment, the investor has to invest only a part of his income every month, the amount of which is predetermined. It is also a good tool for inculcating the habit of savings among the youth; It also helps them to cut down on unnecessary expenses.
- Principal amount along with interest will be returned at the time of maturity of RD. This amount can be used for short term financial situations like going on vacations, annual tuition fees for children, marriage expenses, higher education expenses etc.
