Post Office scheme: If you’re looking to save a fixed amount every month and make a safe investment, the Post Office Recurring Deposit (RD) can be a reliable option. This scheme not only offers a stable interest rate, but its investments are fully guaranteed by the government. This Post Office scheme offers higher returns than banks.
The Post Office Recurring Deposit is a scheme in which investors deposit a fixed amount every month. This scheme is for a period of 5 years. Upon completion, the investor receives fixed interest on the deposit amount. The scheme aims to provide stable returns to small investors while encouraging regular savings.
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Learn about the interest rate
The Post Office RD offers a quarterly interest rate of 6.7% per annum. This interest is compounded every three months, meaning interest is earned on the interest. An RD account can be opened with just ₹100 per month. There is no maximum investment limit in this scheme. Investors can invest as per their convenience.
Who can open an account?
The Post Office scheme is open to all sections of the population, and they can open it in their own name or jointly. Parents can also open this account in the name of their minor children. This scheme will prove to be excellent for those who want to accumulate a substantial corpus by investing their earnings every month.
For your information, Post Office RD is a government savings scheme. There is no risk involved in investing in this scheme. It is administered by the Government of India. This guarantees the complete security of their funds.
These features are available
Post Office RD offers investors the option of automatic renewal upon maturity. This means that account holders can extend the account for another 5 years if they wish. Furthermore, if needed, they can also take a loan based on the deposited amount.