The Post Office Recurring Deposit (RD) scheme is an excellent choice for small investors looking to save money. You can start saving just by investing Rs 100 per month, allowing your fund to grow over time. You invest a certain uniform sum every month, and earn compound interest. The value of your funds grows more, the more often you save. This scheme is backed by the government, meaning your funds are 100% safe. It will also encourage one to develop the habit of saving on a recurring basis.

For safe and a risk-free investment option, this scheme is a great pick. Market fluctuations will not affect this scheme, so the safety of your funds is certain. The scheme offers fixed interest rates which provides steady returns every month. Unlike stocks or mutual funds, you are not exposing your funds to the risk of loss. Millions of people have trusted this scheme to reach their savings goals and secure their future.

5 Lakhs Can Become 35 Lakhs with Post Office RD

If you invest Rs 50,000 every month in the Post Office Recurring Deposit (RD) scheme, it can be a great option for you. Investing continuously in this government scheme for 5 years can give you a total deposit of Rs 30 lakhs, which can grow to around Rs 35 lakhs with interest.

This means if you invest Rs 50,000 per month for 5 years, your total deposit will be Rs 30,00,000, and you will earn approximately Rs 5,68,291 as interest. The total fund will become around Rs 35 lakhs. The biggest advantage of Post Office RD is its safety and guaranteed returns. You can easily build a large fund without any risk.

Details:

  • Monthly Investment: Rs 50,000
  • Investment Period: 5 Years
  • Total Deposit Amount: Rs 30,00,000
  • Interest Earned (Approx.): Rs 5,68,291
  • Total Fund Value (Approx.): Rs 35,00,000
  • Benefits: Safe and assured returns, chance to grow money without risk

Loan Facility and Tax Benefits

If you are in an urgent need of money, after a year or more into the account, you can borrow up to 50% of your deposit. This means you do not have to close your account in order to access your funds. Instead, you simply withdraw the funds and pay it back at a later time in installments.

There are also tax benefits on this matter. People investing in these accounts are entitled to tax deduction of up to Rs 1.5 lakh, which adds to their savings. In short, this is a safe investment that returns value, and receives tax benefits.

(Note: This article is purely educational, and is not intended to offer investment recommendations. Please consult with a financial advisor before making any investment decision.)