SynopsisInvesting Rs 10,000 monthly in a Post Office Recurring Deposit for five years yields a higher maturity amount than an SBI RD. The Post Office RD offers an estimated Rs 7.14 lakh, while SBI RD provides Rs 7.02 lakh. This difference means an investor earns approximately Rs 12,244 more with the Post Office option.ET OnlinePost office RD vs SBI RD: Compare maturity amounts A recurring deposit (RD) account works well for people who wish to invest a monthly amount for a fixed period. Unlike mutual funds or stocks, RD returns are fixed and not affected by market fluctuations. Investors know exactly how much they will receive on maturity, making it suitable for conservative investors.If you invest Rs 10,000 every month for five years in a Recurring Deposit (RD), both the Post Office RD and State Bank of India (SBI) RD can help you build a sizable corpus. However, the returns will differ because of a difference in interest rates provided by the post office and SBI. Here's a comparison of the maturity amounts on a Rs 10,000 monthly investment for five years in a post office RD and an SBI RD.ParticularsPost Office RDSBI RDInterest Rate6.7% p.a.6.05% p.a.Monthly DepositRs 10,000Rs 10,000Tenure5 years5 yearsTotal Amount InvestedRs 6,00,000Rs 6,00,000Estimated Maturity AmountRs 7,13,659Rs 7,01,557Interest EarnedRs 1,13,659Rs 1,01,557Illustrative calculation based on Groww calculatorAlso read: Have unclaimed deposits, insurance, mutual funds? Government launches single portal to trace forgotten assetsWhich RD gives a higher return- post office or SBI?As we can see in calculations, a post office RD will provide a maturity amount of Rs 7.14 lakh at maturity, while the SBI RD will help you get Rs 7.02 lakh. It means an investor would earn approximately Rs 12,244 more by choosing the post office RD over the SBI RD.This calculation is based on current rates. They may change in the future if post office or SBI revise their respective recurring deposit interest rates.What is a recurring deposit account?A recurring deposit account allows you to deposit a fixed amount at regular intervals (monthly) for a predetermined tenure.Post office RD detailsA post office Recurring Deposit (RD) account can be opened with a minimum monthly deposit of just Rs 100, and there is no upper limit of investment.If needed, the account can be closed before maturity, but only after three years from the date of opening. However, if the account is closed even a day before completing the full five-year term, the deposit will earn only the post office savings account interest rate instead of the RD rate.SBI RD detailsAn RD account in SBI can be opened with a minimum monthly deposit of Rs 100. Note that a penalty is charged for delayed payments. If someone misses six consecutive instalments, the RD account may be closed prematurely and the balance amount will be paid to the account holder.For delayed instalments, the penalty is Rs 1.50 for every Rs 100 deposited per month for RD accounts with a tenure of up to five years. For RD accounts with a tenure of more than five years, the penalty is Rs 2 for every Rs 100 per month. These rates may be revised from time to time. However, the total penalty charged cannot exceed the interest earned by the depositor on the account. ...more