Post Office FD vs RD: Which will generate higher returns on Rs 5 lakh investment in 5 Years?
Published on 16/07/2025 08:56 PM
Post Office FD is a small savings scheme offered by India Post where individuals can deposit a lump sum amount for a fixed tenure, and in return, they earn interest on that amount at a predetermined rate.
Post Office RD is a savings scheme offered by India Post where individuals can make fixed monthly deposits for a specified tenure, ranging from 1 to 5 years.
The tenure for Post Office FDs ranges from 1 to 5 years. It is a government-backed investment option, offering attractive interest rates and providing security for your invested amount.
The minimum amount for a one-time investment is Rs 1,000, while there is no maximum limit.
Rate of interest w.e.f 01.07.2025 to 30.09.2025
An RD account can be opened in any post office through a savings account. It can be opened offline and online.
The maturity period of the post office RD is 5 years. The account can be extended for 5 years.
The minimum amount for a monthly deposit in a post office RD is Rs 100 and above.
Rate of interest w.e.f 01.07.2025 to 30.09.2025, interest rate of Post Office RD is 6.7 per cent per annum (quarterly compounded)
Also Read: PPF Calculation: How many years will it take to generate Rs 17 lakh/year tax-free income from Public Provident Fund?
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