In today’s current situation, when the stock market is volatile, the risk in mutual funds is becoming increasingly formidable. In such a situation, the question that comes to the mind of every middle-class person is, is there any safe way to keep his money safe and gradually build a significant fund?
The answer is the Post Office Recurring Deposit (RD) scheme. This scheme has even surpassed bank FDs these days. The most important thing is that this scheme helps us build a large fund.
Why is there so much trust in the Post Office scheme?
Because there is no word ‘risk’ here.
Post Office small savings schemes are directly backed by the government.
Zero risk of fraud or loss.
The interest rate is fixed every 3 months and everything is transparent.
A sure system for both fixed income and future planning.
That is why even today the Post Office is at the top in terms of safe investment.
What is Post Office RD actually?
Recurring Deposit (RD) is for those who-
Cannot invest a lump sum.
You have to save some money from your salary every month.
A large fund will be created without any risk.
In this, you deposit a fixed amount every month and get a large amount of money at maturity.
What is the specialty of Post Office RD?
Key features of Post Office RD-
Minimum investment: Rs 100 per month
Maximum limit: No limit
Current interest rate: 6.7% (with government guarantee)
Tenure: 5 years
Extension facility: 5 more years (total 10 years)
Loan facility: Up to 50% loan of the deposit amount after 1 year.
Can a joint account be opened with a child?
Yes, of course, you can open these accounts in it:
Single account
Joint account (husband and wife)
In the name of a minor (with guardian)
This flexibility makes it a family-friendly scheme.
Now the real question – how to earn Rs 42 lakh in 10 years?
Let’s take a simple example, let’s say-
You deposit Rs. 25,000 every month in RD, step by step plan:
First 5 years: Deposit Rs. 25,000 every month
After 5 years: Maturity
The tenure of this scheme has been extended for 5 years.
Total tenure: 10 years
Complete calculation at a glance
Monthly investment- Rs. 25,000
Total tenure- 10 years
Total investment- Rs. 30,00,000
Maturity amount- Rs. 42,71,364
Total interest- Rs. 12,71,364
That is, clearly, Rs. 30 lakhs have been deposited and Rs. 42.71 lakhs have been received at maturity, that too without any risk.
Is it better than bank FD?
Most FDs offer 5-6% interest rate and sometimes involve taxes as well. FDs usually require a lump sum amount, but post office RDs offer monthly investment options. Investors can build a significant corpus in the long run through government guarantees.
How can a husband and wife earn Rs 42 lakh together?
Under this scheme, a husband and wife can build a fund of Rs 42 lakh through a joint RD account. If each deposits Rs 12,500, the total monthly investment will be Rs 25,000. It has several benefits, such as-
No burden on anyone.
Strong saving habits.
Big future goals (house, children’s education, retirement) made easy.
Safe capital of over Rs 42 lakh in 10 years.
What does it mean for you?
If you are afraid of taking risks – then this scheme is for you.
If you cannot save from salary – then RD will teach you discipline.
If you have plans for retirement or children’s future – then it will become a strong foundation.
If you are getting low returns from FD – then Post Office RD is a good option.
How do you avail this benefit?
Visit the nearest post office.
Open an RD account.
Decide – How much money can you comfortably deposit every month.
Don’t forget to increase the scheme after 5 years.
After 10 years, you will have a bigger fund in your hands.
(Note: This article is for informational purposes only and should not be taken as investment advice in any way. It is advisable to speak to a financial advisor before making any investment decisions.)
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Avijit
A digital media professional with 4 years of experience, skilled in online content creation, media and information work, his goal is to regularly bring updates on government projects, scholarships and jobs to his readers.
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