Detailed Analysis
Both post office and bank RDs are safe savings instruments for monthly investors.
Post office RD is backed by the sovereign guarantee of India — even safer than bank deposits. The rate (currently 6.7%) is set by the government quarterly. No TDS is deducted, simplifying tax filing for small savers.
Bank RD rates vary from 5.5% to 7.5% depending on the bank and tenure. Small finance banks often offer the highest rates. Online banking makes management easy, and tenure flexibility is a big plus.