The post office does more than send letters. It also offers many investment options. One special scheme lets you create a fund of Rs 11 lakh by investing just Rs 222. To do this, you need to know a simple calculation.

You may have heard about different post office schemes. One of them is the Recurring Deposit (RD). In this scheme, you can create a fund of Rs 11 lakh by saving Rs 222 every day. The scheme has a government guarantee, so it is completely safe.

In the post office RD scheme, you deposit a fixed amount every month. If you save Rs 222 each day, it becomes Rs 6,660 per month. In 5 years, you will have deposited Rs 399,600. The scheme pays 6.7% annual interest, which compounds every three months. This means you earn interest on your interest.

How Much Money Will You Get?

After 5 years, you will get 475,297 taka. If you continue this investment for another 5 years, making it a total of 10 years, the investment will grow to 799,200 taka, and the total amount will be 1,137,891 taka. This means, after 10 years, you can get 11 lakh taka. Such a large fund can be created with a small daily savings of just 222 taka.

Benefits of This Scheme

The best part of this scheme is that you don’t need much money to start. You can start with just 100 taka per month. People of all ages can benefit from it – young, old, or even for a child.

You can open an account as a single or joint account. If needed, you can close the account after three years.

If you have been depositing for at least one year, you can take a loan of up to 50% of your deposit. This loan requires only an additional 2% interest, which can help when needed.

Nominee Option Available

This scheme also allows a nominee. In case of any unforeseen event, the nominee can claim or continue the account. The scheme tenure is 5 years, but you can extend it for another 5 years.

Remember, monthly deposits must be paid on time. Otherwise, a 1% penalty per month may apply. Missing four consecutive payments can lead to account closure. This scheme is an easy and safe way to turn small savings into a large fund.