Post Office Scheme : If you want to save a small amount each month to build a substantial fund in the future, the Post Office Recurring Deposit (RD) scheme could be an excellent option for you. Investments in this scheme are safe, returns are assured, and regular installments can help you build a corpus worth lakhs over the long term. Significantly, by depositing Rs 15,000 each month in an RD with an interest rate of 6.7%, you can build a corpus of approximately Rs 25 lakh in 10 years.
How can you make Rs 25 lakh by depositing Rs 15,000?
If you invest Rs 15,000 every month, your fund grows rapidly with an annual interest rate of 6.7%. Your total investment in the first five years is approximately Rs 1.71 lakh. After adding interest, this amount grows to approximately Rs 10.71 lakh. If you continue this investment for the next five years, or a total of 10 years, your fund reaches approximately Rs 25.68 lakh at maturity. Here, your total investment is approximately Rs 7.68 lakh, while the fund grows more than threefold due to interest.
How do you get such huge returns on maturity?
The interest on monthly deposits in an RD is compounded, meaning new interest is added to the growing amount each month. The longer you invest, the greater the return. This is why this scheme combines your small investments into a substantial fund over 10 years.
Why is Post Office RD the first choice of people?
The Post Office RD scheme has become a favorite among investors seeking guaranteed returns without any risk. You can open an account with just Rs 100 and invest as much as you can afford. RDs have a five-year lock-in period, but this can be extended by another five years if needed. This is why many families consider RDs the most reliable option for their children’s education, marriage, or future planning.
The stock market and mutual funds are constantly subject to fluctuations. Therefore, RDs are ideal for those who are risk-averse, seek fixed returns, and want to build a safe fund over the long term. RDs are market-independent, so both returns and maturity are pre-determined.
How to open RD account?
Opening an RD account is quite easy. You can open one at any nearby post office by submitting your Aadhaar card, PAN card, and a passport-size photo. You can also open a joint RD. The first installment can be made with just Rs 100, after which you can increase the amount as per your convenience.