Cannot make changes in RD account once installment is fixed
Recurring Deposit -RD is considered to be a popular alternative to the small savings scheme. RD account is a term deposit offered by banks. In a way, there is a facility to invest a part of your savings every month in this account. Here you get returns according to the fixed interest on your deposited money. The installment once decided cannot be changed. RD account can be opened both at bank or post office. State Bank of India -SBI, the country’s largest state-owned bank, and post offices both provide RD facilities to their customers.
Know how much interest SBI and post office are paying on RD
– SBI offers interest rates on RD from 5% to 5.4% for general public. At the same time, half interest (0.50 per cent) is available for senior citizens. These interest rates are applicable from 8 January 2021. While RD is currently getting 5.8 per cent interest annually in the post office. Which is added on a quarterly basis. These interest rates are applicable from 1 January 2021.
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– RD in SBI has a maturity period of 1 year to 10 years. While the maturity period in the post office is 5 years.
– RD account check in SBI can be opened through cash, but RD account in post office can be opened only by cash.
– In SBI, you can open RD account online through net banking facility, but in post office you have to go to post office branch to open RD account.
– In SBI RD customers are required to deposit at least Rs 100 every month and it should be in multiples of Rs 10. There is no maximum submission limit. While it is necessary to deposit at least 10 rupees every month in the post office and can be deposited in multiples of 5 rupees. There is no limit to invest in this too.
