Post Office Scheme: Every person saves some amount of their hard-earned money for the future. However, in these times of inflation, simply saving money is not enough; investing it in the right and safe place is equally important. Post office small savings schemes prove to be an excellent option to meet this need. Due to government guarantee, these schemes have zero risk and offer excellent returns. One such scheme is the Post Office Recurring Deposit (RD Scheme), which can transform your small daily savings into a substantial fund in just a few years. The most important feature of this scheme is that you can earn an additional Rs 4.40 lakh from the interest on your deposit alone.
Begin your investment journey with just Rs 100
Through the Post Office RD scheme, any Indian citizen who is 18 years or older can open an account at their local post office. The key point is that you can start investing in this scheme with just Rs 100. Currently, the government provides an appealing interest rate of 6.7 percent on these deposits.
Premature withdrawal option
This recurring deposit scheme generally has a maturity period of five years. It’s perfect for individuals with medium-term financial goals. However, the true advantage of this investment comes from extending the account for an additional five years after it matures. Additionally, there is investment flexibility available. If an emergency arises that necessitates immediate funds, account holders can close the account early after three years. In the unfortunate event that the account holder passes away, the nominee specified in the documents can either continue the account or claim the deposit amount.
Affordable emergency loan option
Post Office RDs serve not only as an investment but also as a safety net during tough times. Once the account is opened, account holders have the option to take out a loan against their deposits. Typically, after one year of consistent deposits, you can borrow up to 50% of your account balance as a loan. This is significantly more affordable than the high-interest personal loans available in the market, as the extra interest charged is only 2%.
The calculations behind saving Rs 300 daily to accumulate Rs 15 lakh
Now, let’s explore a strategy that can assist you in building a fund worth lakhs. Imagine you save Rs 300 from your daily earnings every day. This would lead to a total monthly saving of Rs 9,000. If you deposit this amount into a Post Office RD each month, after five years, your total investment will reach Rs 5.40 lakh, and with the interest, this fund will surpass Rs 6 lakh.
If you don’t stop this investment and extend it for another five years (a total investment of 10 years), your original deposit will become ₹10,80,000. Upon completion of ten years, you will receive a lump sum of ₹15,20,889 as maturity. Of this total, ₹4,40,889 will be interest only
