Post Office FD Vs RD: Which of them gives better returns on Rs 1 lakh investment in 5 years
Post Office Fixed Deposit (FD), also known as Post Office Time Deposit Account, and Post Office Recurring Deposit (RD) are two popular schemes for people seeking risk-free investment options. These two Post Office schemes are not market-linked and provide guaranteed returns to investors. While one can invest a lump sum amount in an FD, they can invest monthly amount in an RD. However, in the long term, Post Office FD will be a profitable option. Know how.
While the Post Office FD offers different interest rates for schemes of 1, 2, 3 and 5 years, the interest rate for Post Office RD is 6.7 per cent compounded quarterly. Photo: Unsplash/Representational