SBI Fixed deposit or SBI Recurring deposit for senior citizen: Which will offer a higher maturity on Rs 10,00,000 investment?
SBI FD despite an at par rate with the recurring deposit at the leading lender will offer a better return to senior citizens.
SBI Fixed deposit versus SBI recurring deposit: Conservative investor like senior citizens often look for alternatives to compound their wealth. Here's a quick comparison of what these instruments yield on Rs 10 lakh investment.
SBI FD or SBI RD
SBI FD and RD investment option over the years can compound your wealth and give you good enough amount after some pre-determined tenure.
SBI 10 year FD for senior citizen offers 7.5 per cent return per annum
The instrument on a 10 year FD for senior citizens offer 7.5 per cent return including 50 bps higher return for senior citizens.
SBI FD Interest rate and maturity proceeds
On Rs 10 lakh investment in SBI Senior citizen FD, investor will get an interest of Rs 10,21,363 and hence a total maturity amount of Rs 20,21,363.
SBI RD rate for senior citizens
For reaching Rs 10 lakh investment in say 10 years, investors will need to put in around Rs 8,333 per year.
SBI RD installment of Rs 8,333 per month
For reaching Rs 10 lakh investment in say 10 years, investors will need to put in around Rs 8,333 per year.
SBI RD return
With an investment of Rs 8,333 per month or Rs 9,99,960, the investor will be able to get Rs 4,88,110 interest and so the final maturity amount shall be Rs 14,88,070.
SBI FD offer a better return
So, despite the similar rate of return SBI FD offer a comparatively higher return than the SBI RD.