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10/20/21

Investment: If you want more interest on RD, you can invest in Post Office or SBI



Recurring Deposit (RD) is a popular savings scheme in our country. With it you can create a big fund by depositing money every month. State Bank of India (SBI) is currently offering a maximum interest rate of 5.4% on RD. If you want more interest on RD, you can do RD at the post office. We are telling you about SBI and Post Office RD.


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Important matters related to SBI RD


1. You can invest in SBI from 1 year to 10 years.

2. SBI RD is getting maximum interest of 5.4%.

3. Senior citizens get 0.50% higher interest on it.

4. You can invest a minimum of Rs 100 per month.

5. You can deposit any amount in multiples of more than 10. There is no limit to the maximum deposit amount.

How much interest will you get on investing in which year?


Period                                                                           interest rate (in%)

1 year to 2 years                                                                      4.9

2 years to 3 years                                                                     5.1

5 years to 5 years                                                                     5.3

5 years to 10 years                                                                   5.4

Important matters related to Post Office RD


It has to be invested for 5 years. However you can increase it as you wish.


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If you withdraw money 5 years ago, you will have to pay a penalty.

India Post's RD is earning 5.8% interest.


You can invest a minimum of Rs 100 per month.

You can deposit any amount in multiples of more than 10. There is no limit to the maximum deposit amount.


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Tax on interest of RD

If the interest income from recurring deposit (RD) is up to Rs. 40,000 (Rs. 50,000 in case of senior citizen) then you do not have to pay any tax on it. 10% TDS is deducted on income above that.

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