RD Scheme: Nowadays people are becoming more sensible in terms of money. Given the increasing needs and expenses, people are emphasizing saving. In such a situation, they look for ways to give good returns without risk. For these people, the Post Office has come up with many great schemes.
One of the best schemes among these is RD (Recurring Deposit). This scheme not only keeps your investment completely safe but also provides you with a fixed and attractive interest rate. Let’s go deep into this RD scheme and understand all its aspects so that you too can grow your savings faster.
What is the RD scheme of the Post Office
The Post Office of the Central Government provides this RD scheme. Recurring Deposit Scheme i.e. RD, gives safe returns without any risk. In this, you can start investing with just ₹ 100 every month and get good returns without any risk. The interest received on this is also fixed, so you do not have any uncertainty about your returns.
The duration of this scheme is 5 years. If you need to withdraw money in between, you can withdraw it after 3 years, but then you will get less interest. If you want, you can also take a loan on it. This facility makes it even more flexible.
How to earn ₹14 lakh in 5 years
If you want to earn ₹14 lakh in 5 years, then you have to deposit ₹20,000 every month in the RD scheme. Your total investment in 5 years will be ₹12,00,000. You will get around ₹2,27,320 as interest. In this way, you can earn a total of ₹14,27,320. This shows how a regular and disciplined investment can help fulfill your financial goals.
Note: This calculation is based on current interest rates. If interest rates change in the future, your returns will also change accordingly.
Current interest rates
Currently, the Post Office RD scheme is offering 6.7% interest. This rate is quite attractive compared to many other savings options, especially when it comes to security and certainty. The government reviews interest rates of small savings schemes from time to time, so it is always a wise step to check the latest rates before investing.
How to open an account
To invest in the RD scheme, you first have to go to the Post Office and fill out the RD account opening form. For this, you will need an Aadhaar card, PAN card, and a passport-size photo. You will also have to give the name of the nominee.
You can open an account with a minimum of ₹ 100. This scheme is an excellent option for those who want to save a little every month.