Many people think that a large amount is needed to create a big fund, but it is not so. If you make even small savings every month, then in the long term this saving becomes a big fund. With this thinking, the Post Office has started the facility of the National Savings Recurring Deposit account for the people, which we know as the Post Office RD Scheme. It is a safe and guaranteed investment option that runs directly under the supervision of the government.
What is the Post Office RD Scheme and its benefits
The duration of the Post Office RD Scheme is 60 months, i.e., 5 years. During this time, the investor gets the benefit of a fixed interest rate, which is currently 6.7% per annum (quarterly compounding). The biggest feature of this scheme is that you can start investing in it in multiples of just ₹ 100 or ₹ 10. This makes saving easy for every class of person.
How much fund will you get on a monthly deposit of ₹11,000
If you deposit an amount of ₹11,000 every month, then after 5 years, you will have a huge fund ready. Your total deposit will be ₹6,60,000, on which you will get an additional benefit of ₹1,25,025 in the form of interest. In this way, on maturity, you will get a total of ₹7,85,025. This means that without any risk, you can earn an additional benefit of ₹1,25,025 in just 5 years. This scheme is best for those who want a safe investment and do not want to take the risk of the stock market.
Big benefits of the post office RD scheme
The Post Office RD scheme is not limited to savings only; it gives many other benefits. If you suddenly need money, then a loan facility is also available. For this, you have to submit your passbook and loan application form to the post office. This scheme is completely under government guarantee, so there is no risk of your money sinking.
It is also a great option for those who want to create a fund for future expenses like children’s education, marriage, or buying a house. By investing your small savings regularly, you can create a large and secure fund without any hassle.