The post office not only sends letters but also gives you many ways to invest your money. One of these is a special scheme where you can make a fund of ₹11 lakh by investing just ₹222 daily. You only need to understand a simple calculation.

RD Scheme

You may have heard about many post office schemes. One of them is the Recurring Deposit (RD). In this scheme, you can build a fund of ₹11 lakh by saving just ₹222 every day. This scheme comes with a government guarantee, so your money is completely safe.

In the post office RD scheme, you deposit a fixed amount every month. If you save ₹222 per day, it becomes ₹6,660 per month. In 5 years, you will deposit a total of ₹3,99,600. This amount earns 6.7% annual interest, which is compounded every three months. This means you earn interest on your interest too.

What Will You Get After 5 Years?

After 5 years, you will end up with ₹4,75,297. If you continue with this investment for another 5 years (for a total of 10 years), your total deposit will be ₹7,99,200 and your total return will be ₹11,37,891. You can create a fund of ₹11 lakh in 10 years from saving only ₹222 a day. Such a huge fund can be built from little savings daily!

Benefits of This Scheme

The biggest advantage of this scheme is that you don’t need much money to start. You can begin with just ₹100 per month. Anyone — young, old, or even parents for their children — can open an account under this scheme.

You can open the account alone or jointly. If you need money early, you can close the account after 3 years. Also, if you have been depositing regularly for one year, you can take a loan up to 50% of your deposit. The interest on this loan is only 2% extra, which is very helpful in times of need.

Nominee Option and Rules

This scheme also offers a nominee option. In case of any emergency, the nominee can either claim or continue the account. The scheme runs for 5 years, but you can extend it for another 5 years.

Remember to deposit your monthly amount on time. If you miss it, you may have to pay a 1% penalty per month. Missing four consecutive installments can lead to the account being closed.

This post office RD scheme is a safe and easy way to turn small savings into a big fund.