Post Office RD Scheme: Invest Monthly and Earn Rs 12 Lakh in 10 Years – Details Inside

By

Avijit Das

In today’s time, SIP is considered a better way to invest. However, there is still a large section of people who do not trust the market. They may accept slightly lower profits but prefer to invest in schemes that offer guaranteed returns and keep their investment safe. If you are one of these investors, you can consider investing in the Post Office Recurring Deposit (RD). In this scheme, you don’t need to invest a large lump sum amount. Instead, you can earn better returns by investing a fixed amount every month.

Post Office RD Scheme: Investment Details and Benefits

The Post Office Recurring Deposit (RD) scheme has a tenure of 5 years and offers an interest rate of 6.7%, which is calculated quarterly. With regular monthly contributions, you can accumulate a significant amount over time. For example, if you invest Rs 7,000 every month, you can save Rs 5 lakh in 5 years and approximately Rs 12 lakh in 10 years.

How to Save Rs 12 Lakh

If you extend your RD for an additional 5 years, you could accumulate around Rs 12 lakh. In this case, your total investment will be Rs 8,40,000. The interest earned at an annual rate of 6.7% will amount to Rs 3,55,982, bringing the total maturity amount to Rs 11,95,982, which is close to Rs 12 lakh.

Key Benefits of the Post Office RD Scheme

  • Low Minimum Investment: You can start a Post Office RD with as little as Rs 100, making it accessible to everyone.
  • No Maximum Investment Limit: There is no upper limit on how much you can invest.
  • Compound Interest: Enjoy the benefits of compound interest, which helps your savings grow over time.
  • Multiple Account Options: You can open multiple accounts under your name, and joint accounts for up to three people are allowed. Accounts can also be opened in the name of a child.
  • Maturity and Premature Closure: The RD account matures in 5 years, but you can opt for premature closure after 3 years if needed.
  • Nomination Facility: You can nominate a person to claim the amount in case of an emergency.
  • Extension Option: After the maturity period, you can extend your RD for another 5 years.
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