If you have some money to invest and want to earn more interest on it, you have options like SIP and RD.
In both, you put a fixed amount of money every month and earn interest. But remember, SIP doesn’t guarantee returns because it depends on the market.
On average, SIP gives around 12 percent return, but it can vary.
Now, if you don’t want to take risks and want guaranteed returns, then Recurring Deposit (RD) is a good choice.
You can open an RD account in banks or post offices. In banks, you can start an RD for 1 to 10 years, but in post offices, it’s for 5 years.
Banks usually offer good interest rates even for short periods.
Here’s how much interest you can get on RD for different durations:
For one year
SBI: 6.80%
HDFC: 6.60%
ICICI: 6.70%
Kotak Mahindra: 7.10%
For two years
SBI: 7.00%
HDFC: 7.00%
ICICI: 7.10%
Kotak Mahindra: 7.15%
For three years
SBI: 6.50%
HDFC: 7.00%
ICICI: 7.00%
Kotak Mahindra: 7.00%
For five years
SBI: 6.50%
HDFC: 7.00%
ICICI: 7.00%
Kotak Mahindra: 6.20%
Post Office: 6.70%
Now, where will you benefit the most?
If you invest in Kotak Mahindra Bank for one or two years, you’ll get good interest rates. They offer 7.10% for one year and 7.15% for two years.
For three years, HDFC, ICICI, and Kotak Mahindra offer the same interest rate of 7.00%.
If you want to go for five years, HDFC and ICICI Bank also offer 7.00% interest, which is beneficial.
