Post Office Scheme: If you’re looking to start investing and want to ensure your money is completely safe and earn a good return, the Post Office RD scheme could be a good option. Currently, this scheme offers an annual interest rate of 6.7 percent.

Post Office RD is ideal for those who can set aside a small amount each month. You can start investing with as little as Rs 100 per month. There is no upper limit. Any Indian citizen can open a single or joint account. This scheme attempts to protect investments from the effects of inflation. It often offers better returns than bank FDs. Furthermore, it’s a government-funded scheme, so there’s no risk of losing money. It’s a reliable investment option for those who are risk-averse.

The maturity period of a Post Office RD is five years. The good news is that after five years, you can extend it for another five years. This means you can continue investing for a total of ten years. This scheme not only offers savings but also loan access if needed. After one year of account opening or after twelve installments, you can take a loan up to 50 percent of the account balance. This option can be useful in case of an emergency without compromising your investment.

If your goal is to build a corpus of Rs 20 lakh, you’ll need to save approximately Rs 400 daily. This translates to a monthly deposit of approximately Rs 12,000 in a Post Office RD. After five years, it’ll be necessary to extend the scheme. Only then will a substantial corpus be created. In this way, you can accumulate approximately Rs 20,50,248 in your account over ten years. Of this, approximately Rs 14,40,000 will be your own deposit, while approximately Rs 6,10,248 will come from interest alone. This means that with regular savings, you can build a substantial corpus through this post office scheme.