Post Office Scheme: In these times of inflation, if you want to build a strong and secure fund through small savings, then the government savings schemes offered by the Post Office can prove to be very beneficial for you. This is especially true for those who want guaranteed returns while avoiding risk. The Post Office Recurring Deposit Scheme, operated by India Post, is one such reliable scheme that helps you achieve your future goals by making regular savings a habit.
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The biggest advantage of this Post Office scheme is that you can start investing with a very small amount. An account can be opened with just Rs 100, and by saving Rs 200 daily and converting it into monthly investments, a large fund can be created over the long term. Since this scheme is government-backed, the investment is considered completely safe.
The Post Office Recurring Deposit Scheme currently offers an annual interest rate of 6.7 percent. This interest is compounded quarterly, which allows the invested amount to grow rapidly over time. Importantly, market fluctuations do not affect this scheme, making it an ideal option for risk-averse investors.
The maturity period of this scheme is five years. However, if the investor wishes, the account can be extended for another five years after maturity. This increases the total investment period to ten years, allowing for even greater interest benefits. Any person aged 18 years or older can open this account at their nearest post office.
Another special feature of the Post Office RD scheme is that you can also take a loan against your investment. After one year of opening the account, the investor can take a loan of up to 50 percent of their deposited amount. The interest rate on this loan is only two percent extra, which is considered quite low compared to other options. This is why this scheme is also useful in times of need.
The scheme also offers the facility of premature closure. Investors can close the account after three years if they wish. In the event of the account holder’s death, the nominee has the full right to claim the deposited amount or continue the account.
If you save ₹200 daily, you can invest a total of ₹6,000 per month. Depositing this amount monthly in a Post Office Recurring Deposit (RD) for five years results in a total investment of ₹3,60,000. This earns approximately ₹68,197 in interest, and the total fund at maturity reaches ₹4,28,197.
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If this investment is extended for another five years, the total deposit over ten years becomes ₹7,20,000. During this period, the interest earned alone amounts to approximately ₹2,05,131. Thus, the investor accumulates a strong and secure fund of ₹10,25,131.
