If you’re looking to accumulate substantial wealth in the future, the Post Office Recurring Deposit (RD) scheme can be very useful. By depositing small amounts every month under this foolproof scheme, you can easily build a corpus worth lakhs in just a few years. The best part is that your money is completely safe, as it’s guaranteed by the government.
A monthly savings of ₹5,000 can lead to a massive corpus of ₹8.5 lakh
Suppose you deposit ₹5,000 every month in this Post Office scheme. Here’s the simple math for regular investment:
In 5 years: You’ll deposit a total of ₹3 lakh. You’ll earn approximately ₹56,830 in interest. This means you’ll have a total of ₹356,830 after 5 years.
In 10 years (extending the scheme by 5 years): If you extend this scheme for another 5 years, i.e., deposit ₹5,000 every month for a total of 10 years, your total deposit will reach ₹6 lakh. The interest on this will be approximately ₹2,54,272.
Thus, after 10 years, you will have a total deposit of ₹8,54,272. This means that by saving just ₹5,000 per month, you can build a strong corpus of over ₹8.5 lakh.
Start with as little as ₹100 and get guaranteed security
This post office scheme isn’t just for the wealthy. It’s also highly beneficial for those who can’t afford to save much each month. You can start saving with just ₹100 per month. Gradually increase the amount, and in a few years, you will have a substantial sum.
There is no upper limit on the deposit amount; you can deposit as much as you can each month, as per your capacity. Many market schemes carry the risk of losing money, but in this government-guaranteed scheme, your entire deposit is considered completely safe. Even banks only guarantee deposits up to ₹5 lakh, but here your entire deposit is safe.
Loan facility and online payment if needed
If you need money at any time, there’s no need to worry. After completing one year in this scheme, you can take a loan of up to 50% of your deposit. This means that the money will continue to accumulate, and you will continue to receive assistance when needed. You no longer need to visit the post office every month.
If you have an India Post Payments Bank (IPPB) account, you can pay your monthly installment online from the comfort of your home. Under this scheme, you can open an account individually or jointly with a family member. Accounts can also be transferred from one post office to another, if needed.