{"id":3190,"date":"2025-08-07T21:12:32","date_gmt":"2025-08-07T21:12:32","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/07\/fd-vs-rd-where-should-you-invest-rs-7-lakh-for-better-returns-business-news\/"},"modified":"2025-08-07T21:12:32","modified_gmt":"2025-08-07T21:12:32","slug":"fd-vs-rd-where-should-you-invest-rs-7-lakh-for-better-returns-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/07\/fd-vs-rd-where-should-you-invest-rs-7-lakh-for-better-returns-business-news\/","title":{"rendered":"FD Vs RD: Where Should You Invest Rs 7 Lakh For Better Returns? | Business News"},"content":{"rendered":"


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If you are investing Rs 7 lakh in one go, SBI\u2019s 5-year Fixed Deposit gives better returns than the National Savings Recurring Deposit.<\/h2>\n
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It is a smarter option for those who can invest a lump sum amount. (Representative Image)<\/p>\n<\/figure>\n

If you have Rs 7 lakh to invest for 5 years and are confused between choosing a Fixed Deposit (FD) or a Recurring Deposit (RD), here is a simple breakdown. Both options are safe and reliable, but the way they work and the returns they give are quite different.<\/p>\n

With an FD, you invest a lump sum amount at once. In this case, Rs 7 lakh would stay locked in for five years and earn interest regularly. On the other hand, an RD allows you to invest smaller amounts every month. So instead of putting in Rs 7 lakh at once, you can save a fixed amount each month over 60 months.<\/p>\n

Interest Rates Compared<\/strong><\/p>\n

SBI FD offers interest rates ranging from 3.05 per cent to 6.60 per cent per annum for regular customers, and up to 7.10 per cent for senior citizens.<\/p>\n

Post Office RD offers around 6.7 per cent p.a., compounded quarterly. The rate is fixed and may change slightly depending on government updates.<\/p>\n

Returns on Rs 7 Lakh Investment<\/strong><\/p>\n

If you invest Rs 7 lakh in an SBI FD, your maturity amount after 5 years would be approximately Rs 9,66,294, giving you a return of around Rs 2,66,294, as per Zee Business.<\/p>\n

But if you go for an RD, spreading the Rs 7 lakh over 60 monthly deposits, your maturity amount will be Rs 8,34,982, which means your total return would be Rs 1,32,982, the publication adds.<\/p>\n

What Should You Choose?<\/strong><\/p>\n

\u2013 Go for FD if you already have a lump sum amount and want higher returns through compounding.<\/p>\n

\u2013 Choose RD if you prefer saving a fixed amount each month and do not have a large amount ready to invest.<\/p>\n

In terms of returns, FD performs better when you are putting in Rs 7 lakh upfront. But RD still works great for disciplined monthly savers.<\/p>\n

Other Points to Note<\/strong><\/p>\n

SBI FDs are available to individuals, senior citizens, and NRIs. You can open and manage the account online.<\/p>\n

Post Office RDs are open to Indian residents and even minors above 10 years. But for online access, you need a linked Post Office Savings Account.<\/p>\n

Taxes: Interest earned is taxable under your income slab. For FDs, TDS is applicable if annual interest crosses Rs 40,000 (Rs 50,000 for seniors).<\/p>\n

If you have Rs 7 lakh ready to invest, SBI FD offers better returns over 5 years. But if you are more comfortable with monthly savings, RD is a good fit too.<\/p>\n

Keep in mind, this is not financial advice. Please consult a financial expert before investing.<\/p>\n

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