Post Office small savings schemes are considered the most reliable for those looking for investment options with safe and guaranteed returns in India. The government guarantees the safety of investments in these schemes and offers attractive interest rates. One such popular scheme is the Post Office Recurring Deposit Scheme, where investments can be started with just Rs 100. Significantly, by depositing Rs 333 daily, an investor can build a corpus of approximately Rs 17 lakh in 10 years.
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What is Post Office RD, and Who Will Benefit?
The Post Office Recurring Deposit Scheme is a government-owned savings scheme that offers fixed interest on monthly deposits. Anyone over the age of 10 can open this account. Minors can open accounts with the consent of their parents, and a new KYC is required upon attaining the age of 18. The account can be opened at post office branches, as well as through e-banking and mobile banking.
Guaranteed returns at 6.7 percent annual interest
This scheme currently offers an annual interest rate of 6.7 percent, which is revised quarterly by the government. The interest is compounded, allowing the amount to grow rapidly over time.
5-Year Maturity and Extension Option
The original maturity period of an RD account is 5 years. Investors can extend this period by another 5 years, taking the total term to 10 years. The account cannot be closed before the completion of three years, but premature closure is permitted under special circumstances. In the event of the account holder’s death, the nominee can claim the account or continue it.
Monthly Deposit Rules
If an RD account is opened before the 16th of the month, deposits must be made by the 15th of every month. If the account is opened after the 16th, payment must be made between the 16th and the last working day of the month. A small penalty is levied for not making the deposit on time.
A loan facility is also available for investment
The special feature of this scheme is that investors can take a loan of up to 50 percent of the deposit amount after completion of one year. The interest rate on this scheme is 2 percent higher than the RD interest rate. This feature makes it a more convenient and liquid investment option.
How to become 17 lakh rupees by saving 333 rupees daily
If a person saves 333 rupees daily, this amount becomes 10 thousand rupees per month. By depositing 10 thousand rupees every month, the total deposit amount will be 6 lakh rupees in the first 5 years, which will earn an interest of approximately 1.13 lakh rupees. If the investor continues this for another 5 years, the total investment will be 12 lakh rupees, and the maturity amount, including interest, will become approximately 17,08,546 rupees. This means that regular savings alone will create a safe fund of ₹17 lakh in ten years.
If you invest ₹5,000 every month, you will receive a total of ₹8,54,272 in 10 years, which will include interest of ₹2,54,272.