SIP and RD are two such schemes in which you can deposit a fixed amount every month and make good savings for yourself. However, in terms of profit, people consider SIP to be better. Investment is made in Mutual Funds through SIP and this scheme is linked to the market. Because of this, returns cannot be guaranteed in SIP. But RD is such a scheme in which you can easily find out how much money you will get on maturity because you know in advance how much interest you will get in this scheme.
People who like safe investments often choose the option of RD. If you also want to start investing and are confused about whether to invest in RD or SIP, then know here how much return you will get if you run an RD of Rs 5,000 for 5 years and how much return you will get if you start a SIP of the same amount and run it for 5 years?
On investing Rs 5000 in RD
You get the option of RD in both the bank and post office. RD can be done in the bank for 1 to 10 years, whereas in the post office, there is an RD scheme for 5 years, no less and no more than that. If you invest Rs 5,000 in post office RD for 5 years, then you will get 6.7% interest on it. In 5 years you will invest Rs 3,00,000 and at the rate of 6.7%, you will get Rs 56,830 as interest. In this way, you will get Rs 3,56,830 after 5 years.
How much benefit will you get from SIP?
Investment in SIP is not guaranteed, but experts consider its average return to be 12 percent. Due to compounding, this amount increases rapidly. In such a situation, if you start an SIP of Rs 5000 for 5 years, then on an investment of Rs 3 lakh, you will get an interest of Rs 1,12,432 at the rate of 12 percent, and after 5 years you will get Rs 4,12,432. If seen, this is double compared to RD. On the other hand, if the return is more than 12 percent, then the return can be more than double.
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