If you want to grow your savings regularly while keeping your money completely safe, the Post Office Recurring Deposit (RD) scheme is an excellent and reliable option. This scheme is directly backed by the Government of India, ensuring that your investment is 100% secure and you receive assured returns.
You can deposit any amount each month as per your convenience and budget, but you can open this RD account with as little as ₹100. This scheme is especially beneficial for those who want to build a large corpus by saving small amounts from their monthly income without any risk.
A monthly investment of ₹20,000 will yield ₹14.27 lakh
The biggest strength of a Post Office RD is its fixed returns and quarterly compounding. Suppose an investor decides to deposit ₹20,000 every month. Thus, their total principal amount will grow to ₹12 lakh over a period of 5 years. Currently, the interest rate on this scheme is 6.7% per annum, calculated on a quarterly compounding basis. Quarterly compounding ensures you continuously earn interest on your interest, allowing your capital to grow rapidly.
At this 6.7% rate, you will receive additional and secure interest of approximately ₹2.27 lakh upon maturity in 5 years. Thus, your total maturity amount after 5 years will be approximately ₹14.27 lakh, a stable and reliable financial achievement.
Special Benefits of the RD Scheme
The key feature of the Post Office RD Scheme is that it offers quarterly compounded interest on deposits to accelerate investment growth. The process for this scheme is extremely simple. You can easily open this account by visiting your nearest post office branch. The tenure of this scheme is 5 years, and after maturity, it can be extended for another 5 years.
For emergency needs, you can also take a loan against your deposit. After one year of opening the account, you can take a loan of up to 50% of the deposit amount, which can be a strong source of financial support during difficult times.
EEE Benefits
Given the current volatility and risk in the stock market and mutual funds, the Post Office RD scheme emerges as a stable and reliable option. It is ideal for investors who want to build a secure future fund by regularly saving in their budget.
Investments made in this scheme also receive tax benefits under Section 80C of the Income Tax Act. Although the interest earned is not completely tax-free, this benefit under Section 80C makes it highly attractive for investors who want to save money while still seeking safe returns.
Why is this scheme special
This scheme is considered ideal for those accumulating wealth for long-term goals such as children’s education, marriage, or retirement. Easy investment, reliable interest rates, and tax benefits make this RD scheme extremely popular among investors. To achieve your financial goals seamlessly through regular investments, you can open an RD account at your nearest post office branch today and take the first step towards a secure and prosperous future.