Small savings schemes run by the Post Office have always been a top choice for investors. Secure investment, government guarantee, and better interest rates make these schemes attractive. One of the most popular options is the Post Office Recurring Deposit Scheme (RD scheme), which allows investments starting from just Rs 100. Through regular savings, this scheme helps in building a large fund of millions of rupees. The best part is that by saving just Rs 333 per day, you can accumulate up to Rs 17 lakhs in ten years.

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6.70 percent interest rate on investment

The government offers an attractive interest rate of 6.70 percent on Post Office RDs. Anyone can open an account in this scheme. A minor of 10 years can also have an account, although in such cases, the account is initially operated by the guardian. Upon reaching 18 years of age, the minor has to submit their new KYC and opening form. This account can also be opened through mobile banking and e-banking facilities, making the investment process even easier.

Investment can be continued even after maturity

The maturity period of the Post Office RD scheme is five years, but investors can extend it for another five years if they wish. This means a large corpus can be built by saving regularly for a total of ten years. Additionally, the account can be prematurely closed after three years. In case of the account holder’s death, the nominee can claim the account or continue the investment.

A large fund can be created from small daily savings

If an investor saves Rs 333 daily and deposits approximately Rs 10,000 per month in the scheme, the total deposit in five years will be Rs 6 lakhs. At an interest rate of 6.70 percent, this will yield a profit of approximately Rs 1.13 lakhs. If the investment period is extended by another five years, the total investment reaches Rs 12 lakhs, and the interest earned is approximately Rs 5,08,546. In this way, a total fund of ₹17,08,546 is accumulated in ten years.

If an investor deposits ₹5,000 monthly instead of ₹10,000, then approximately ₹8,54,272 can be accumulated in ten years, where the interest alone amounts to ₹2,54,272.

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Loan facility is also available on the RD account

Another feature of the Post Office RD scheme is that the investor can also take a loan from the account if needed. After the account has been active for one year, the investor can take a loan of up to 50 percent of the deposited amount. Only an additional two percent interest is charged for this. This facility proves to be a financial support in case of sudden need and the investment is not disrupted.