If you are looking for a safe and great return investment option, then the National Savings Recurring Deposit Account (Post Office RD) scheme of the Post Office can be the best for you. This is a 5-year small savings scheme that helps in creating a big fund by depositing a fixed amount every month. Your money is completely safe in this scheme, and the government is giving 6.7% annual interest (quarterly compounding) on it. Let us know the benefits of this scheme and the complete mathematics of investment.
What is the Post Office Recurring Deposit (RD) Scheme?
Post Office RD is a savings scheme in which you have to deposit a fixed amount every month. This scheme is especially for those who cannot invest a large amount at once, but want to save regularly. The lock-in period of this scheme is 60 months or 5 years. You can start investing in this with just ₹100 and can deposit any amount in multiples of ₹10.
How to save ₹ 7 lakh in 5 years?
The best thing about this scheme is that you can start investing with just ₹ 100 per month. But if you invest ₹ 10,000 every month, then in just five years you will have a big fund of ₹ 7,13,659. In this, your total deposit amount will be ₹ 6 lakh and you will get a benefit of ₹ 1,13,659 in the form of interest.
For the current quarter (July to September 2025), this scheme is getting 6.7% annual interest. However, this rate may change after review by the government every three months. This scheme is initially for five years, but if you want, you can extend it for the next five years as well. In this way, you can create a huge fund by investing for a total of 10 years.
Loan facility in case of emergency
Another big advantage of this scheme is that if you suddenly need money, then you can take a loan on your deposited money. You can avail a loan of up to 50% of your total deposit amount after completion of one year. However, the interest rate on this loan is 2% higher than the interest rate of RD. This scheme is best for those who want to save regularly and meet their future financial goals by staying away from risk.