For the bright future of their children, every parent wants a strong fund to be prepared to meet their education and marriage expenses. In such a situation, the Post Office Recurring Deposit (RD) scheme is a great option. The special thing about this scheme is that you can start investing with just ₹ 100 per month and can easily create a fund of up to Rs 17 lakh.

Why is the Post Office RD Scheme special?

Small start: You can open an account with just ₹ 100 / month.

No upper limit: You can invest as much as you want.

Safe investment: Money is completely safe with a government guarantee.

Attractive interest rate: 6.7% annual interest (with compounding).

Long term: 5-year maturity, which can be extended.

How to create a fund of 17 lakhs?

If you deposit ₹10,000 every month, then:

Your total investment in 5 years: ₹6,00,000

Amount received on maturity: ₹7,13,659 (profit of ₹1,13,659).

If you continue investing for 10 years, then:

Total investment: ₹12,00,000

Maturity amount: ₹17,08,546 (profit of ₹5,08,546).

How to open an account?

It is necessary to have a post office savings account.

Children above 10 years can open an account with their parents.

Can apply online/offline.

After the age of 18, the child will have to fill out a new KYC form.

Loan facility and other benefits

After 12 months, you can take a loan of up to 50% of your deposited amount.

In case of the death of the account holder, the nominee can take the money or continue the account.

The account can be closed after 3 years.

People Also Ask (Google Search FAQs):

1. What is the interest rate in Post Office RD?

Currently, 6.7% annual interest is being given.

2. Can children open their RD account?

Yes, children above 10 years can open an account with the help of their parents.

3. How much can one invest in the RD scheme?

Minimum ₹100/month, but no maximum limit.

4. Is this scheme safe?

Yes, it is backed by the government, so completely safe.

5. How much investment will be required to create a fund of 17 lakhs?

₹10,000/month investment grows to ₹17.08 lakh in 10 years.

Disclaimer: This information is for educational purposes only. Consult your financial advisor before investing.