Numerous options like markets, mutual funds and cryptos can promise huge returns, but they also involve volatility and risk. This is why most people in the country still look for investment options that ensure complete security and guaranteed returns. For such individuals, the Post Office Recurring Deposit (RD) scheme is considered one of the most reliable options.
The biggest feature of the Post Office RD scheme is that it comes with a complete government guarantee. This means that there is no risk of losing the money invested in it. This is why millions of people from small towns and villages to big metropolises have complete trust in this scheme. Let’s find out how much money can be invested in this scheme to create a fund of more than Rs 14 lakh in 5 years.
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The returns will fill your pocket
Post Office RD starts from just Rs 100 per month.
- This means that it does not require much money in the beginning.
- In RD, small savings build a big fund.
- In RD scheme, interest on interest is available.
- In this, money grows rapidly due to compound interest.
- RD is offering about 6.7% annual interest.
- It gives better returns than FDs of many banks.
- It is a safe and reliable investment option.
Understand the calculation of Rs 14 lakh fund
- In this, a big fund is created from small savings.
- A fund of Rs 14 lakh will be created at an interest rate of 6.7 percent.
- Invest Rs 20,000 every month in Post Office RD.
- The investment period should be kept for 5 years i.e. 60 months.
- In this, the total deposit amount will be about Rs 12 lakh.
- A fixed amount of Rs 20,000 is deposited every month.
- In this, a total of Rs 2,28,727 lakhs of interest will be available in 5 years.
- That is, the amount will increase to Rs 14.28 lakhs at maturity.
- There is a huge benefit due to interest.
- It is clear that you will get an additional profit of more than Rs 2 lakhs.
How will the money be useful?
- This amount is used to buy a house or for down payment.
- It will be helpful in meeting the education and marriage expenses of children.
- There will be a safe haven in the form of an emergency fund.
- Very beneficial for middle-class families.
- Big goals are achieved through small savings.
- Post office RD is the most trusted savings option.
The option is risk-free.
- Government guarantee, so the investment is completely safe.
- Provides the facility of starting small savings.
- In this, money grows rapidly due to quarterly compounding.
- In this, the process of opening and running the account is easy.
- There is a wide range of post offices in villages and cities.
- If necessary, the option of premature closure will be available.
- In short, if you are wondering how to secure your future with a limited income, Post Office RD is a stress-free and reliable method. Develop a habit of saving a small amount every month and let time do its work. These small savings can add up to lakhs of rupees in the future.
(Note: This article is for informational purposes only and should not be taken as investment advice. Please consult a financial advisor before making any investment decisions.)