Publish Workplace FD vs RD: Which can generate larger returns on Rs 5 lakh funding in 5 Years?

What’s Publish Workplace Fastened Deposit (FD)?

Publish Workplace FD is a small financial savings scheme supplied by India Publish the place people can deposit a lump sum quantity for a set tenure, and in return, they earn curiosity on that quantity at a predetermined fee. 

What’s Publish Workplace Recurring Deposit (RD)?

Publish Workplace RD is a financial savings scheme supplied by India Publish the place people could make mounted month-to-month deposits for a specified tenure, starting from 1 to five years. 

Publish Workplace FD

The tenure for Publish Workplace FDs ranges from 1 to five years. It’s a government-backed funding possibility, providing engaging rates of interest and offering safety on your invested quantity. 

What’s the minimal quantity for opening publish workplace FD account?

The minimal quantity for a one-time funding is Rs 1,000, whereas there isn’t any most restrict.

Curiosity Charges on Publish Workplace FDs:

Fee of curiosity w.e.f 01.07.2025 to 30.09.2025

• 1-12 months FD: 6.9 per cent rate of interest
• 2-12 months FD: 7.0 per cent rate of interest
• 3-12 months FD: 7.1 per cent  rate of interest
• 5-12 months FD: 7.5 per cent  rate of interest

Account opening in RD

An RD account might be opened in any publish workplace by a financial savings account. It may be opened offline and on-line. 

Maturity interval of publish workplace RD

The maturity interval of the publish workplace RD is 5 years. The account might be prolonged for five years. 

What’s the deposit quantity in publish workplace RD account?

The minimal quantity for a month-to-month deposit in a publish workplace RD is Rs 100 and above.

Curiosity Fee of Publish Workplace RD

Fee of curiosity w.e.f 01.07.2025 to 30.09.2025​, rate of interest of Publish Workplace RD is 6.7​ per cent each year (quarterly compounded)

Publish workplace FD calculations: Returns on Rs 5 lakh lump sum funding?

• Time interval: 5 years
• Complete Funding Quantity: Rs 5,00,000
• Curiosity Fee: 7.5 per cent each year 
• Curiosity earned: Rs 2,24,974
• Maturity Worth: Rs 7,24,974

Publish workplace RD calculations: Returns on a Rs 8,333 month-to-month funding?

• Time interval: 5 years
• Complete Funding Quantity: Rs 5,00,000
• Curiosity Fee: 6.7 per cent each year 
• Curiosity earned: Rs 1,97,033
• Complete Worth at Maturity: Rs 6,97,033

Additionally Learn: PPF Calculation: What number of years will it take to generate Rs 17 lakh/yr tax-free revenue from Public Provident Fund?