Nowadays, people invest in various avenues to grow their wealth, but not every option is right for everyone. This is why millions of people choose to invest in Post Office small savings schemes over other options. It’s easy to build a substantial corpus by saving even a small amount daily in Post Office schemes, and the best part is that your entire investment is 100% secure.
RD Scheme
People’s trust in Post Office small savings schemes has always been strong. Government guarantees and fixed interest rates further strengthen them. This is why RD (Recurring Deposit) schemes are once again in the news. Investing in them is simple, and even a small amount can build a substantial corpus over time. This unique feature is that even small savings can create a substantial corpus.
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How to build a fund of ₹17 lakh
If someone saves approximately ₹333 daily and deposits ₹10,000 per month in an RD, they can accumulate a corpus of approximately ₹17 lakh after 10 years. This shows how small savings can add up in the long run. Currently, the post office offers 6.7 percent annual interest on RDs
Let’s understand this investment mathematically. A monthly deposit of ₹10,000 for the first five years results in a total deposit of ₹6 lakh, earning an interest of approximately ₹1.13 lakh. Continuing this for the next five years brings the total deposit to ₹12 lakh, and the interest for the entire 10 years amounts to approximately ₹5.08 lakh. The final maturity amount is approximately ₹17,08,546.
Easy account opening and loan facility
The process of opening an RD account is simple, and even children over the age of 10 can open one. Upon reaching the age of 18, the child can update their KYC and manage the account themselves.
This scheme is also suitable for investors with small funds. If a person deposits just ₹5,000 per month, they can accumulate a corpus of approximately ₹8.54 lakh in 10 years. After one year of RD, a loan of approximately 50 percent of the deposit amount is also available, providing significant relief in case of unexpected needs.
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