If you are planning to get RD, then first know where to invest post office or SBI will be more beneficial. If you are planning to get RD, then first know where to invest in Post Office or SBI will be more beneficial

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  • If You Are Planning To Get RD, Then First Know Where To Invest Post Office Or SBI Will Be More Beneficial

New Delhi23 minutes ago

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In this inflationary time, it is not an easy task for the monthly wage earners to create a big fund. But you can do this by saving a little every month. Recurring Deposit (RD) can help you in this. Under this scheme, you can create a large amount by making small savings. Today we are telling you about Post Office RD and State Bank of India (SBI) RD.

First of all understand what is RD?
Recurring Deposit or RD can help you save big. You can use it like a piggy bank. Meaning you keep putting a certain amount in it every month when the salary comes and on its maturity you will have a big amount in your hand. Its maturity period is usually between 6 months to 10 years.

Special things related to State Bank of India (SBI) RD

  • You can invest in SBI for 1 year to 10 years.
  • The maximum interest available on SBI RD is 5.4%.
  • Senior citizens get 0.50% more interest on this.
  • You can invest a minimum of Rs 100 in this every month.
  • You can deposit any amount more than this in multiples of 10. There is no limit on the maximum deposit amount. Click here for more information

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

PeriodInterest Rate (in %)
1 year to less than 2 years4.9
2 years to less than 3 years5.1
5 years to less than 5 years5.3
5 years to less than 10 years5.4

Special things related to Post Office RD

  • It has to be invested for 5 years. However, you can extend it as per your wish.
  • If you withdraw money after 5 years then you will have to pay penalty.
  • India Post’s RD is getting 5.8% interest.
  • You can invest a minimum of Rs 100 in this every month.
  • You can deposit any amount more than this in multiples of 10. There is no limit on the maximum deposit amount. Click here for more information

Tax on interest from RD
If the interest income from Recurring Deposit (RD) is up to Rs 40000 (Rs 50000 in case of senior citizens), then you do not have to pay any tax on it. 10% TDS is deducted on income above this.

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