The preferred name of investors when it comes to investing their hard-earned money in the right place is the Indian Post Office Savings Scheme. To avoid financial problems in the future, people invest in various schemes of the Indian Postal Department. However, if you dream of building a large fund by saving a small amount of money, then the best option for you may be the Indian Post Office Recurring Deposit or RD Scheme. If you invest Rs 3,500 every month here, then in just 5 years, you will get about Rs 7.5 lakh along with the interest.

You can start investing with just 100 rupees

The Recurring Deposit Scheme or RD Scheme has distinguished itself from other schemes of the Post Office in terms of high returns at the end of the term by saving a small amount. Needless to say, a person can start investing under this scheme from just 100 rupees. However, there is no maximum investment limit in this scheme. Let us tell you that anyone can open an account in this scheme in their own name after the age of 18. Moreover, 10-year-old children can also open an account in this scheme in the name of their parents.

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An annual interest of 6.7 percent is available under this scheme of the Post Office. You can start your investment journey with a recurring deposit by investing a small amount to secure your and your child’s future financially. Needless to say, the maximum tenure of this scheme of the Post Office is 5 years. Although its tenure can be extended later.

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How to get 7.5 lakhs by keeping 3,500 rupees?

It has been mentioned earlier that the Recurring Deposit Scheme of the Post Office offers an annual interest rate of 6.7 percent. In that case, if a person deposits Rs 3,500 every month in this RD scheme, then after 5 years, his total investment amount will be Rs 2,10,000. Added to this is the annual interest rate of 6.7 percent received from the Post Office. In total, at the end of the 5-year period, the investor will be able to withdraw Rs 7,49,339 or about Rs 7.5 lakh.

It is worth noting that investing under the Recurring Deposit Scheme of the Indian Post Office is completely risk-free. Also, there is no risk of sinking if you invest money in this scheme. The government will take responsibility for your money. It is important to note that if the original person or investor dies within 5 years after investing in the Recurring Deposit, his designated person or nominee can continue this scheme.