- By Aditya Pratap Singh
- Wed, 22 Jul 2026 05:56 PM (IST)
- Source:JND
- Post Office RD offers a 6.7% annual interest rate.
- SBI RD provides a 6.5% annual interest rate.
- Post Office yields Rs 20-30k more on maturity.
If you are the kind of person who wants to accumulate a large corpus with an investment of a certain amount every month and that too without any risk, a Recurring Deposit (RD) could be an excellent option for you, and the RD schemes of the Post Office and public sector bank State Bank of India (SBI) could be a safe choice for you. However, the interest rates vary, resulting in a difference in the maturity amount. Let's understand with calculation, where will you get the most returns over 10 years if an investor deposits Rs 10,000 every month.
Post Office RD Interest and Rules
The Post Office RD currently offers an interest rate of 6.7 per cent per annum, and the interest amount is compounded quarterly. The original term of this scheme is 5 years, but you can extend it after maturity. Being government-backed, it is considered one of the safest investment options.
SBI RD Interest Rate
SBI's standard RD currently offers a 6.5 per cent annual interest rate. SBI RDs also require a fixed monthly deposit, and the full amount, including interest, is received upon completion of the term.
SBI Vs Post Office RD Calculation
RD Calculation: If a person deposits Rs 10,000 per month for 10 years, then—
Monthly investment: Rs 10,000
Total term: 10 years (120 months)
Total deposit: Rs 12,00,000
Now let's look at the estimated maturity amount for both schemes.
Post Office RD Calculation
Monthly Investment: Rs 10,000
Total Investment: Rs 12,00,000
Interest Rate: 6.7 per cent per annum
Estimated Maturity Amount: Approximately Rs 17.2 lakh
This means the investor can earn approximately Rs 5.2 lakh in interest.
SBI RD Calculation
Monthly Investment: Rs 10,000
Total Investment: Rs 12,00,000
Interest Rate: 6.5 per cent per annum
Estimated Amount at Maturity: Approximately Rs 17 lakh, meaning an investor can earn approximately Rs 5 lakh in interest.
Which one will yield more returns?
Based on current interest rates, investing in a Post Office RD can yield approximately Rs 20,000 to Rs 30,000 more at maturity than an SBI RD.
Keep these things in mind before investing:
Timely monthly instalment payments are required for RDs.
Interest rates may change based on prevailing situations.
Rules for premature account closure may vary.
Before investing, you should be clear about the goal of investment, tenure, and returns.