I am MBA final year student and making final year project report on the topic recurring deposit account (RDA) searching for some details. Will you provide me basic details about the Post Office RD Vs SBI RD so that I can put these details on my final year MBA project report?

A post office recurring deposit account (RDA) is similar to a recurring deposit in a bank, where you can invest a fixed amount on a monthly basis. The postal RDA has a fixed tenure of five years.

Difference:

These deposits accumulate money at an annual fixed rate of interest of 8 per cent. The interest is compounded on a quarterly basis.

The minimum investment in a post office RDA is Rs 10 and there is no prescribed upper limit.

For example, if you invest Rs 100 every month in 60 instalments, you will earn a sum of Rs 7,289 after 5 years.

SBI RD:

You can start a recurring deposit with State Bank of India (SBI) for a monthly instalment of Rs 100

Banks, however, offer a flexible time period on their recurring deposits.

You can open an RDA for a minimum period of 6 months, and thereafter in multiples of 3 months up to a maximum period of 10 years.

Eligibility for RD:

Recurring Deposit Accounts can be opened by individuals as single or as joint accounts.
An RD Account can be opened in the name of a minor. Minor individuals aged 10 years and above can open and operate their RD accounts

Other details:

A postal time deposit fetches annual interest rates in the range of 6.25 to 7.5 per cent.

A bank FD offers annual interest rates in the range of 3.75 per cent to 7.27 per cent.

Senior citizens enjoy the privilege of earning higher interest rates on bank FDs, ranging from 4.25 per cent and 7.95 per cent.