PPF vs RD comparison: If you are thinking of investing money in some safe scheme then this article can help you. These schemes will help those who are not able to invest money in one go. Maximum return can also be obtained by investing this amount every year. In this article we are going to tell you about such projects. Which of the famous central government schemes like PPF and post office RD scheme is the best? How much return can be seen here.
It is difficult for many to invest large amounts at once. For such people, Public Provident Fund (PPF) and Recurring Deposit (RD) schemes can prove very useful. By investing in these schemes every month, you can build a huge fund. What is the interest rate in these two schemes? We have mentioned below how many years of investment in any one will be beneficial. So that you can invest according to your need.
7.1% interest can be availed on PPF
- This scheme can be opened at any bank or post office.
- PPF account can be opened in just 500 rupees. A maximum of Rs 1.5 lakh every year in this account. Investment is possible.
- The scheme is valid for 15 years, which cannot be withdrawn in between. But it can be extended to 5-5 years after 15 years.
- It cannot be closed before 15 years, but after 3 years, a loan can be taken against this account. If anyone wants, he can withdraw money from this account from 7th year under the rules.
- The government reviews interest rates every three months. These interest rates can be low or high. This account currently earns 7.1% interest.
- Investing in this scheme can avail tax exemption under Section 80C of the Income Tax Act.
How much return will you get if you invest for 15 years?
Under this scheme, if you invest 1 thousand rupees every month for 15 years, you will get around 3.20 lakh rupees after 15 years. That means you will get interest of more than 1.40 lakhs.
See below how much money you will get after 15 years of investing every month
| Investment every month | Total Deposit | How much interest will be earned? | The total amount received |
| Rs.1,000 | 1 lakh 80 thousand Rs. | 1 lakh 39 thousand Rs. | 3 lakh 19 thousand Rs. |
| Rs.2,000 | 3 lakh 60 thousand Rs. | 2 lakh 79 thousand Rs. | 6 lakh 39 thousand Rs. |
| Rs.5,000 | 9 Lakh Rs. | 6 lakh 98 thousand Rs. | 15 lakh 98 thousand Rs. |
Get RD 6.5% interest
- Currently, 6.5% interest is being charged on Post Office Rd. RD is a type of small savings scheme. Apart from post office, any person can open his account in banks.
- You can invest a minimum of Rs.100 per month in the RD scheme. Beyond this, you can deposit any amount in multiples of 10. There is no limit to the maximum deposit amount.
- One or more RD accounts can also be opened. This account can also be opened in the name of minor children. You can perform it yourself when you are 10 years old or older. 3 people can also open a joint account together.
- RD can help you save big. Keep putting fixed amount in it every month when you get salary and after 5 years you will have huge amount in hand. However, you can get an extension after 5 years and for another 5 years. You can do this as many times as you want.
1000 every month for 15 years how much return will you get?
Under this scheme, if you invest Rs 1 thousand every month for 15 years, you will get around Rs 3.03 lakh. That means, more than Rs 1.23 lakh will get interest.
See below how much money you will get after 15 years of investing every month
| Investment every month | Total Deposit | How much interest will be earned? | O |
| Rs.1,000 | 1 lakh 80 thousand Rs. | 1 lakh 23 thousand Rs. | 3 lakh 3 thousand Rs. |
| Rs.2,000 | 3 lakh 60 thousand Rs. | 2 lakh 47 thousand Rs. | 6 lakh 7 thousand Rs. |
| Rs.5,000 | 9 Lakh Rs. | 6 lakh 17 thousand Rs | 15 lakh 17 thousand Rs. |
Where is the right place to invest?
If you can invest your money for 15 years, PPF scheme is better. 7.1% interest is getting. At the same time, 6.5% interest is being paid on RD. But it has a lock in period of 5 years which is lower than PPF. Choose the right plan according to your financial status.
