Recurring Deposit (RD) is a better option if you want to have a fixed savings every month and a fixed return without any risk on it. It is a very popular saving scheme because in this you do not have to worry about returns like mutual funds. After a certain amount of money is saved every month, a significant amount gets deposited in your bank account. You can open RD account in any bank or post office. In such a situation, it is important for you to know which of these two places can be a better option to invest. Let us know in detail what is the difference between opening an RD account in a bank and starting an RD in a bank. Also, what is more beneficial than these.

Duration: You can get RD for a fixed period of five years in the post office. Currently, if you want to make Recurring Deposit (RD) in the bank, then you can invest for a period of six months to 10 years. Rate of interest: On getting RD done in Post Office, you get 7.2 percent interest. The interest received on the RD of the post office is reviewed by the government every quarter and the government determines the interest. On the other hand, most public sector banks pay seven percent interest on RD. Banks do not usually change the interest rate on RD. Once the interest is fixed, the interest rate remains the same during the RD period.

Withdrawal Before Maturity: Both Post Office and Bank have the option of withdrawal before maturity. Right now, you have to pay the penalty for this. If you get RD at the post office, after one year you can withdraw up to 50 percent. This advance can be resubmitted as a lump sum at any time with a fixed rate of interest. Interest calculation: Interest is calculated on quarterly basis in RD of both bank and post office but it is paid at the time of maturity. Nomination: Both bank and post office have the facility of nomination in RD. RD can be transferred from one post office branch to another branch. This rule also applies to the bank's RD.

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