Post Office RD Vs SIP: If you invest Rs 5,000, which of the two can give you better returns, SIP or RD? Know the 5-year calculation here.
Post Office RD Vs SIP: For those who like to invest small savings somewhere, schemes like SIP and Post Office RD can prove to be very good. In both the schemes, a fixed amount has to be deposited every month. For those who like guaranteed returns, investing in Post Office RD can be a better option. But for those who want better profits and do not shy away from taking risks for this, SIP can be a very good option. Experts believe that long term investment in SIP can give very good profits. Know here if you invest Rs 5,000, then which of the two SIP and RD can give you better returns? Know here the calculation of 5 years.
On investing Rs 5000 in RD
You get the option of RD in both bank and post office. RD can be done in bank for 1 to 10 years, whereas in post office there is RD scheme for 5 years, no less and no more than that. If you invest Rs 5,000 in post office RD for 5 years, then you will get 6.7% interest on it. In 5 years you will invest Rs 3,00,000 and at the rate of 6.7% you will get Rs 56,830 as interest. In this way you will get Rs 3,56,830 after 5 years.
How much benefit will you get from SIP?
Investment in SIP is not guaranteed, but experts consider its average return to be 12 percent. Due to compounding, this amount increases rapidly. In such a situation, if you start a SIP of Rs 5000 for 5 years, then on an investment of Rs 3 lakh, you will get an interest of Rs 1,12,432 at the rate of 12 percent and after 5 years you will get Rs 4,12,432. If seen, this is double compared to RD. On the other hand, if the return is more than 12 percent, then the return can be more than double.
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