SBI RD vs Post Office RD: Which offers better returns on Rs 1000, 3000, 5000, and 7000 monthly investments over 5 years?

ZeeBiz WebTeam | Jan 29, 2025, 03:12 PM IST

A recurring deposit (RDs) scheme is one of the popular choices for investors seeking fixed returns. Similar to mutual fund SIPs, RDs allow investors to make monthly contributions, with tenures ranging from one to 10 years. Both State Bank of India (SBI) and Post Office offer RDs of different tenures. One of the recently launched RDs that garnered attention was SBI Har Ghar Lakhpati RD. The scheme offers up to Rs 5 lakh maturity amount. Know which of the 2- SBI Har Ghar Lakhpati RD and Post Office’s National Savings Recurring Deposit Account- offers higher return? Which can provide you higher maturities on monthly investments of Rs 1,000, Rs 3,000, Rs 5,000, and Rs 7,000? Get these answers in this write-up!

 

 

 Image: Pixabay, Freepik

 
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)

1/10

What is recurring deposit?

What is recurring deposit?

A recurring deposit is a savings option that allows citizens to make fixed monthly deposits and earn interest over a specified period. It is available at banks and post offices, with the Post Office RD offering a fixed tenure of 5 years, while banks like SBI provide more flexible tenures.

2/10

Why opt for RD?

Why opt for RD?

 

- Low risk: RDs are considered a low-risk investment option.
- Disciplined saving: They encourage regular savings, helping individuals build a corpus over time.
- Attractive interest rates: RDs offer interest rates comparable to fixed deposits.

3/10

SBI’s Har Ghar Lakhpati Scheme

SBI’s Har Ghar Lakhpati Scheme

Launched by the State Bank of India, the Har Ghar Lakhpati scheme is a customised RD solution designed to help customers accumulate Rs 1 lakh or more by depositing small monthly amounts. It aims to make it easier for individuals to achieve their financial goals.

4/10

Post Office’s National Savings RD

Post Office’s National Savings RD

The Post Office’s National Savings RD requires a minimum monthly deposit of Rs 100, with increments of Rs 10. There is no maximum limit, and the account has a fixed tenure of 5 years, which can be extended for another 5 years.

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Interest Rates: SBI vs Post Office

Interest Rates: SBI vs Post Office

 

SBI RD: For general citizens, SBI offers an interest rate of 6.50 per cent per annum for deposits with a tenure of five to ten years.

Post Office RD: Offers a fixed interest rate of 6.70 per cent per annum for a five-year tenure.

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SBI vs post office: How much return will you get on Rs 1,000 monthly investment?

SBI vs post office: How much return will you get on Rs 1,000 monthly investment?

With a Rs 1,000 monthly investment, the SBI scheme allows you to accumulate an estimated Rs 7,09,902, with an approximate return of Rs 1,09,902. In comparison, the post office scheme offers an estimated Rs 7,13,659, yielding an approximate return of Rs 1,13,659.  

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SBI vs post office: How much return can you get on Rs 3,000 monthly investment?

SBI vs post office: How much return can you get on Rs 3,000 monthly investment?

Under SBI's ghar har lakhpati scheme, Rs 3,000 monthly investment can generate an estimated Rs 21,29,732, with a return of Rs 3,29,723. Meanwhile, the post office scheme offers approximately Rs 21,40,974, with an estimated return of Rs 3,40,974.  

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SBI vs post office: How much will you get on Rs 5,000 monthly investment?

SBI vs post office: How much will you get on Rs 5,000 monthly investment?

 

With a Rs 5,000 monthly investment, SBI offers an estimated Rs 35,49,532, with a return of Rs 5,49,532. The post office scheme, on the other hand, provides an estimated Rs 35,68,291, with a return of Rs 5,68,291.  

 

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How much will you get on Rs 7,000 monthly investment?

How much will you get on Rs 7,000 monthly investment?

A Rs 7,000 monthly investment in SBI can yield an estimated Rs 49,69,356, with a return of Rs 7,69,356. Meanwhile, the post office scheme offers approximately Rs 49,95,609, with an estimated return of Rs 7,95,609.

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SBI RD VS Post office RD: Conclusion

SBI RD VS Post office RD: Conclusion

The Post Office RD offers slightly higher returns compared to SBI’s Har Ghar Lakhpati scheme across all investment amounts (Rs 1K, 3K, 5K, and 7K monthly). Both options are low-risk and ideal for investors looking to build a corpus over 5 years.

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