Everyone wants to earn good profits by investing their money, but many people are often confused about which scheme to choose or where to invest for better returns. Let’s talk about post office schemes. The post office offers a variety of schemes where you can invest and earn attractive profits. All these schemes are government-backed, making them safe.

Today, we will compare the post office FD (Fixed Deposit) and post office RD (Recurring Deposit) schemes. We will explain which one will give you more profit if you invest for 5 years. Let’s find out.

Post Office FD Scheme

In the Post Office FD scheme, you can invest in fixed deposits with different tenures. The interest rates vary depending on the tenure. If you invest in a 5-year Post Office FD, you will earn an interest rate of 7.5%. For an investment of Rs 7 lakh, you will receive a total of Rs 10,14,964 at maturity, which means your total profit will be Rs 3,14,964.

Post Office RD Scheme

In the Post Office RD (Recurring Deposit) scheme, you need to invest a fixed amount every month. The maturity period for this scheme is 5 years, with an interest rate of 6.7%. If you invest Rs 10,000 every month for 5 years, your total investment will be Rs 6 lakh. At maturity, you will receive a total of Rs 7,13,659, which means your profit will be Rs 1,13,659.

Which One is More Profitable for Middle-Class People?

When it comes to profitability, the Post Office FD Scheme stands out as the better option for middle-class individuals. The FD scheme offers a higher interest rate of 7.5%, which translates to greater returns on a lump-sum investment. For example, investing Rs 7 lakh in the Post Office FD for 5 years will yield a profit of Rs 3,14,964. On the other hand, the Post Office RD Scheme, which requires a fixed monthly investment of Rs 10,000, offers an interest rate of 6.7%. While it still provides a good return, the profit after 5 years is Rs 1,13,659. Therefore, while RD is great for those who prefer monthly savings, the FD scheme provides better profitability with a higher return, making it a more suitable choice for those with a lump-sum amount to invest.