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# Post Office RD & SIP Calculation: By depositing ₹ 5000 in both these schemes, where will you get more profit, know the calculation

Recurring Deposit and Systematic Investment Plan, both of these are different means of investment. But what is a profitable deal for you to invest in? Here, on the basis of calculation, know about your work.

In today’s time, there are many means of investment. Nevertheless, there is a large section that likes to invest in schemes like Recurring Deposit (RD) or Fixed Deposit (FD) in the name of investment because in this you get guaranteed returns. In FD, you have to fix a lump sum amount for some time, but RD is like a piggy bank, that is, you deposit a certain amount every month and on maturity you will get that amount with interest.

However, if you want, you can get your monthly investment with better returns by taking a little risk. For this, you have to invest in mutual funds through Systematic Investment Plan ie SIP. There is definitely some risk of market fluctuations in SIP, but till now in most of the cases it has been seen to get good profits. In terms of investment, it can prove to be a better option than RD. Know how?

#### Why SIP is better than RD

In this case, Shikha Chaturvedi, an expert in economic matters, says that SIP can be started with a small amount just like RD. In today’s time, if you invest in a 5-year RD in the post office, you will get an interest of 5.8% per annum, while SIP has so far seen the benefit of interest on an average of 12%. If your luck is good, then you can get more than 12 percent return. Apart from this, you also get the benefit of compounding in SIP.

Read Also 👉:-  SIP Calculation: How much money will you get on monthly investment of Rs 5000, Rs 8000, Rs 10000 in SIP, know the calculation.

#### How much benefit from investing on RD

Shikha says that suppose you run a monthly RD of ₹ 5000 in the post office for 5 years, then in this case you will get interest at the rate of 5.8%. According to the Post Office RD Calculator, with a monthly investment of Rs 5000, you will invest a total of Rs 3,00,000 in 5 years. On this you will get Rs 48,480 as interest at the rate of 5.8%. That means after 5 years you will get Rs.3,48,480.

#### How much profit from investing on SIP

Now if we talk about SIP, then after making a monthly investment of ₹ 5000 every month for 5 years, here also your total investment will be of ₹ 3,00,000 only. But if you look at the interest rate of 12% on an average, then you will get Rs 1,12,432 as interest. In this way after 5 years you will get Rs 4,12,432. On the other hand, if your luck favors you and you make a profit of 14% or 15%, then you will get even more money. In this way, if seen in today’s time, SIP can prove to be much better in terms of investment than RD.

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