Besides banks, the post office also offers some fantastic savings schemes as well. By investing in these schemes, you too could one day be a millionaire. One of the programs offered by the post office can make you a millionaire in just five years! All of the post office programs are 100 percent backed by the government of India, so you know that your money is safe with them.
If you invest ₹25,000 each month into the Post Office Recurring Deposit (RD) plan, you will have more than ₹17 lakh in just five years! The interest rates on the plan are 6.5 percent per year, compounded monthly. In total, you will earn ₹2.74 lakh in interest which gives the total net amount, after five years, ₹17,74,771.
Who Can Open an RD Account?
You can open a Recurring Deposit (RD) account at any post office in India. Two or three people can also open a joint account together. The minimum investment in a post office RD is ₹100, and there is no maximum limit.
If needed, you can close your RD account, but some rules must be followed. If the account holder dies before maturity, the legal heir will receive the RD money after submitting the required documents. The heir can also choose to continue the RD if they wish.
Things to Remember Before Opening an RD
The interest rate is decided by the government and is updated every three months, which helps in getting better returns. You must deposit money every month before the due date; otherwise, a penalty of ₹1 per ₹100 will be charged. Also, don’t forget to make a nomination while opening the account to avoid legal issues in the future.