RD vs SIP Calculation: Both SIP and RD are investment options and in both of them you get the option to deposit the amount every month. In such a situation, if you have to invest Rs 5000 per month, then which can give you better returns? Know the calculations for 5 years and 10 years here.
If you want to increase your wealth then it is very important to invest. Nowadays there are many investment options. In some, guaranteed returns are available, while in some others, there is no guarantee as to how much return will be received. Nowadays market linked SIP is being liked a lot. Through this, investments are made in mutual funds. Experts believe that long term investment in SIP can yield good profits. But some investors do not want to take any kind of risk. Therefore, they prefer to invest in such schemes from where they can get guaranteed returns.
Both SIP and RD are investment options and in both of them you get the option to deposit the amount every month. In such a situation, if you have to invest Rs 5000 per month, then which can give you better returns? Know the calculations for 5 years and 10 years here.
On investing in RD of Rs 5000
You get the option of RD in both banks and post offices. In banks, RD can be done for 1 to 10 years, whereas in post office, RD scheme is for 5 years, neither more nor less. If you start an RD of Rs 5000 for 5 years in SBI, then at present you will be given interest at the rate of 6.5 percent.
The interest rate will remain the same even if RD is done for 10 years. According to SBI Calculator, you will invest Rs 3 lakh in 5 years and you will get interest of Rs 54,957 at the rate of 6.5 percent. In this way, after 5 years you will get a total of Rs 3,54,957. If you run it for 10 years, then there will be an investment of Rs 6 lakh and you will get Rs 2,44,940 as interest at the rate of 6.5 percent. In this case, the total amount you will get on maturity is Rs 8,44,940.
How much return on post office RD
If you start RD in the post office for 5 years, then you will get interest at the rate of 6.7%. This is better than SBI. But here you can get RD done only for 5 years. Here also you will invest Rs 3 lakh in 5 years and at the rate of 6.7 per cent you will get Rs 56,830 as interest. In this way you will get Rs 3,56,830 after 5 years.
How much benefit will there be from SIP?
Investment in SIP is not guaranteed, but experts consider its average return to be 12 percent. Due to compounding, this amount increases rapidly. In such a situation, if you start a SIP of Rs 5000 for 5 years, then on an investment of Rs 3 lakh you will get an interest of Rs 1,12,432 at the rate of 12 percent and after 5 years you will get Rs 4,12,432. Whereas if it is continued for 10 years, then Rs 5,61,695 will be received only as interest on investment of Rs 6 lakh and after 10 years this amount will become Rs 11,61,695. If you want, you can continue SIP further. There is no condition like time limit in this. Besides, you can also increase the investment amount as your income increases.
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