Post Office RD: Nowadays it has become very important for everyone to save money and invest it in the right place. In such a situation, if you also want to keep your money completely safe and expect good returns, then the Post Office Recurring Deposit Scheme can be a great option for you.

This post office scheme is specially designed for those who want to make a big fund by saving small parts of their income through regular savings. Let us know in detail how this scheme works, what are its rules, and how you can invest in it. This will prove to be an important step towards your financial security.

What is the Post Office Recurring Deposit (RD) Scheme

The RD Scheme of the post office is a great savings scheme in which you deposit a fixed amount every month. This amount starts from a minimum of ₹ 100, and you can invest as much amount as you want according to your convenience. The biggest feature of this scheme is that the government gives guaranteed interest on the amount invested in it.

The duration of this scheme is 5 years. That is, you will deposit a fixed amount every month for 5 consecutive years, and in the end, you will also get great interest along with your deposit. There is no fear of fraud or any kind of loss in this post office scheme, as it is completely a government scheme. This is its biggest USP which gives mental peace to the investors.

What is the interest rate in the Post Office RD Scheme

At present, in this scheme, you get an attractive interest rate of 6.7 percent per annum. This interest rate can be changed by the government from time to time, but at present, this rate is considered to be very attractive and reliable compared to many other savings options.

If you deposit an amount of ₹ 10,000 every month for 5 years, then after the completion of the period of 5 years, you will get around ₹ 6 lakh 42 thousand. This amount is a great combination of your investment and the interest earned on it. This shows how small savings can create a big fund over time.

Who can apply for this scheme

Only Indian citizens can apply for the Post Office RD scheme. Children above 10 years of age can also open their accounts with the consent of their parents so that they can be taught the importance of saving from an early age. Applying to the scheme is quite easy and you can do it both online and offline.

Some important things you should keep in mind

In the RD scheme, you have to deposit your installment every month by the due date. If you miss depositing even a single installment, you may have to pay a penalty and interest may also be deducted. Therefore, it is important to maintain regularity.

If your interest amount exceeds ₹40,000 (₹50,000 for senior citizens), you may have to pay TDS (tax deduction at source). Therefore, it is important to know the TDS rules before investing.

There is no maximum investment limit in this scheme. You can invest as much as you want according to your convenience and income. This gives you flexibility according to your financial goals.

How to open an account in the Post Office RD Scheme

Post Office RD Scheme
Post Office RD Scheme

Opening an account in the Post Office RD Scheme is very easy. For this, you have to follow the following steps:

First of all, you have to go to your nearest post office.

There you will get the application form for the RD scheme, which you can fill out.

After filling out the form, submit the required documents related to your identity and address (like an Aadhaar card, or PAN card).

Also, deposit your first installment.

As soon as you submit all this, your account will be opened and you will be given a passbook or receipt, which will contain the details of your deposit and interest.

Also keep in mind that now online applications are also being accepted for this scheme at many post offices and government portals, making it possible to open an account even from home.