For those who want to keep their hard-earned money safe and get a fixed rate of return, the Post Office Recurring Deposit (RD) scheme has emerged as a reliable option. This scheme is completely government-backed, so the risk is minimal and the returns are secure for investors.
Start with just Rs 100:
The biggest advantage of Post Office RD is that it is very easy to invest in it. You can open an account with just Rs 100. There is no upper limit on the investment amount. As a result, this scheme is attractive to people of all income groups. Currently, the government is offering an interest rate of 6.7 percent per annum on this scheme.
Build a large fund with small daily savings:
If you want to save more than Rs 10 lakh in the future, you do not need to invest a huge amount of money. By saving about Rs 200 every day, you can deposit Rs 6,000 every month.
If this amount is deposited for 5 consecutive years, the total investment will be Rs 3.60 lakh, which will turn into about Rs 4.28 lakh including interest. Then, if you extend this account for another 5 years, then after 10 years you can get around Rs 10.25 lakh.
Loan and withdrawal facilities in case of need:
This post office RD scheme is not only limited to savings, it also helps in times of need. As per the rules, a loan of up to 50 percent of the deposited amount can be taken after one year of opening the account. In case of emergency, the account is also allowed to be closed before maturity after 3 years. If any unfortunate incident happens to the account holder, the nominee gets the entire deposited amount along with interest.
Who can avail the benefits of this scheme?
Any Indian citizen aged 18 years and above can visit their nearest post office and invest in this scheme. This plan is especially suitable for those who want to avoid the volatility of the stock market and make safe and reliable investments.