Not many people realize that if you are aiming to build up Rs 1 crore, a goal many dream of, using a mix of fixed deposits (FDs) and recurring deposits (RDs) can be super effective. Let’s break down how this benefits you.
Both post offices and banks offer FDs and RDs of different tenures. Interest rates may vary. For instance, the post office offers a 6.7% interest rate on its RD, while its rate for the 5-year FD is 7.5%. The post office RD account matures in five years, but can be extended for five years with or without additional deposits. The 5-year post office FD, like its other three FDs, can also be extended for another term.
