In today’s inflationary era, everyone wants to invest their hard-earned money in the right place and earn huge profits. If you are also dreaming of creating a big fund with less risk, then a great scheme of the post office is for you. We are talking about Post Office Recurring Deposit (RD). In this scheme, your money is completely safe and at the same time, you get great returns. Let us know in detail about this scheme, and how you can create a fund of lakhs by depositing small amounts every month.
Post Office RD
The Post Office Recurring Deposit Scheme is a boon for those who want to create a big fund for the future by saving a little money every month. The biggest feature of this scheme is that there is no risk in it. The money deposited by you is completely safe under the sovereign guarantee of the Government of India. While there is a guarantee of only up to Rs 5 lakh on the deposit amount in banks, your entire deposit amount is safe in the post office.
In this scheme, you can deposit a small amount every month. The minimum investment is just Rs 100 per month, and the good thing is that there is no limit on the maximum investment. That is, you can invest as much as you want. The maturity period of this scheme is 5 years, but you can extend it for 5-5 years.
In the post office RD scheme, you get an interest rate of 6.8%, which is added as compound interest on a quarterly basis. That is, you not only get interest on your money but also interest on interest. Because of this, your money grows rapidly. You can open both a single account and a joint account in this scheme, which makes it even more flexible.
Deposit Rs 5000, get more than 8 lakhs
Now let’s come to the most exciting part of this scheme. If you deposit Rs 5000 every month, then in the maturity period of 5 years you will deposit a total of Rs 3 lakh. At an interest rate of 6.8% on this amount, you will get an interest of Rs 56,830. That is, after 5 years you will have a total of Rs 3,56,830.
But if you increase this amount for another 5 years, that is, invest for a total of 10 years, then your deposit amount will become Rs 6 lakh. On this, you will get an interest of Rs 2,54,272 at a compound interest rate of 6.8%. In this way, after 10 years you will have a total fund of Rs 8,54,272. That is, with a small saving of just Rs 5000 per month, you can create a fund of more than Rs 8 lakh.
These are the special features of the post office RD scheme, which makes it very attractive for the common people. Let’s know about them:
In this scheme, only Rs 100 needs to be deposited every month. That is, people with small savings can also take advantage of it.
You can deposit as much money as you want. With this, even big investors can take advantage of this scheme.
Your money is completely safe with the sovereign guarantee of the Government of India.
If you need money, then after 1 year you can take a loan of up to 50% of the deposit amount.
This account can be easily transferred from one post office to another.
You can also deposit installments online through an IPPB (India Post Payments Bank) savings account.