Post Office Schemes: In India, the Post Office is a trusted institution. Its function is not only to deliver mail but also to operate various schemes. The central government runs several schemes through the Post Office. You can avail of excellent interest rates on government schemes through the Post Office. Your money remains safe, and you can also get substantial returns in the future.

For investors, Fixed Deposits and Recurring Deposits are very popular schemes. Both are excellent savings schemes. In fixed deposits, you get a fixed interest rate. There is absolutely no risk involved; your money will not be lost. You can learn more about which scheme is better below. After understanding the details of the schemes, you can invest.

FD vs RD – Which is Better for You? Know the Details - Times Bull — fd vs rd

How Special is a recurring deposit?

The RD scheme operated by the Post Office is an excellent plan. It is also known as a 5-year savings plan. Investors can deposit a fixed amount every month. This is ideal for those who want to cultivate the habit of saving regularly. The interest is compounded quarterly and paid at maturity. This leads to a continuous increase in capital over time.

Features of the Scheme

The Post Office RD scheme is very special. The fixed 5-year term encourages saving for college fees or other medium-term savings goals. You can invest as little as ₹100 every month. Most importantly, anyone can start saving.

You will also benefit from quarterly compounding interest. After 3 years, you can withdraw the deposited money prematurely. It also provides partial liquidity in case of emergencies. You can withdraw up to 50% of the total deposited amount as a loan.

Types of Accounts in the Scheme

You can open different types of accounts in the Recurring Deposit scheme. There is an option for a single account, allowing an individual to invest. You can also open a joint account, suitable for families or partners working towards shared goals. You can even start investing by opening an account in your children’s names.

Post Office Fixed Deposit

Fixed deposits at the post office are known as Time Deposits (TD). They offer guaranteed returns for periods ranging from 1 to 5 years. You invest a lump sum, and the interest is compounded annually, with annual payouts.

You can choose the time period according to your needs. The minimum deposit is ₹1,000 – accessible to most Indian families. There is no upper limit. It is considered a very safe investment. Premature withdrawal is also permitted after 6 months.

About the Author

vipin kumar

Vipin Kumar is An experienced journalist with 8 years in the media industry, having worked with prominent news platforms including Dainik Jagran and News24. Currently serving at Timesbull.com for almost four years, dedicated to delivering truthful, transparent, and people-centric news that informs and empowers readers. Committed to transparent, ethical, and...

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