It feels good if you get a strong return on your hard earned money. A huge amount is also prepared for the future. At present, there are many options available for investment. The special thing is that these investment tools are also giving explosive returns.
Post Office RD vs SIP: On one hand, the trend of investment through mutual funds has increased, on the other hand, the traditional option remains the first choice as a safe investment. Similarly, there is Post Office Recurring Deposit i.e. RD and on the other hand there is Systematic Investment Plan i.e. SIP. Monthly investment is made in both the options. So let’s quickly know where more returns are being received on monthly investment…
RD can be started anywhere in bank or post office. There is a recurring deposit scheme in the post office. Where you can start investing with just Rs 100. Let us tell you that 6.7% annual interest is being given in the RD of the post office, which is applicable from January 1, 2024. Whereas money is invested in mutual funds through SIP. There is a need to open a demat account for SIP.
Return on monthly deposit of Rs 3000 in RD
According to the Post Office Recurring Deposit Calculator, Rs 3,000 is deposited every month. In this way, the maturity amount for a period of 5 years in RD will be Rs 2.14 lakh. In this, the total deposit amount from the investor will be Rs 1,80,000. Also, there will be a guaranteed income of Rs 34,097 from interest on the total deposit. That is, a huge amount can be prepared by saving Rs 100 daily and investing monthly. The special thing is that even after maturity, investors can continue the RD account for the next 5 years. Nomination facility is also available in this.
Return on depositing Rs 3000 every month in SIP
By depositing Rs 3000 monthly through SIP, investors will get Rs 2,47,459 on maturity in a period of 5 years. In this, the total deposit amount will be Rs 1,80,000 and Rs 67,459 will be received from interest. This can be calculated on the basis of 12% return every year. Rs 67,459 was earned from interest in this scheme.
Important point related to SIP
Through SIP, the investor invests money in the market. This is the reason why returns cannot be guaranteed. But still most experts consider SIP to be the best option for wealth creation. The money invested in mutual funds is managed by the fund manager. Due to this, the risk is reduced considerably.
Special points of Post Office RD
You can start investing in recurring deposit (RD) in post office with just Rs 100. You can open an account with a minimum of Rs 100. After this, investors can deposit in multiples of Rs 10 each. While there is no maximum investment limit in the scheme. A person can open multiple accounts in Post Office RD.
Apart from single, joint account can be opened for up to 3 persons in the scheme. Parents can open an account for minors. The maturity of the RD account of the post office is in 5 years. But investors can withdraw the money only after 3 years i.e. pre-mature closure can be done after 3 years. After depositing 12 installments on the RD account in the post office, a loan of up to 50% of the amount deposited in the account can be taken.
