When it comes to safe investments, the government schemes of the post office become the first choice of people. The reason for this is clear, the money invested here is completely safe and the government itself guarantees it. For this reason, post office schemes are also called zero risk saving schemes. By saving Rs 333 daily and investing about Rs 10,000 every month, you can build a fund of about Rs 7 lakh in just 5 years. If you extend the investment for another 5 years, the fund can reach Rs 17 lakh at the time of maturity.
The post office RD scheme is specially designed for those who cannot invest a large amount at once but want to build a large fund by adding small amounts every month. The biggest advantage of this scheme is that the investment is safe, the interest is fixed and loan facilities are also available if needed.
The government is offering 6.7% interest rate-
- The post office RD scheme is currently offering an interest rate of 6.7% per annum.
- No large amount of money is required to open an account under this scheme.
- You can start investing with just Rs 100 per month.
- The maturity period is 5 years, but it can be extended if desired.
- Anyone aged 18 years and above can open an account under this scheme.
- This account can also be opened in the name of children, which can be managed by their parents.
How can you earn Rs 5 lakh from interest alone under this scheme?
The figure is simple and within the reach of the average person. Suppose you save just Rs 333 every day. This amount is about Rs 10,000 per month. Now, you deposit this Rs 10,000 every month in the Post Office RD Scheme.
How to create a fund of Rs 17 lakh from RD in 10 years?
First 5 years of account
Monthly investment: Rs 10,000
Total fund: Rs 6,00,000
Interest income: Rs 1,13,659
Total fund: Rs 7,13,659
Investment growth for next 5 years
Total investment: Rs 12,00,000
Total interest: Rs 5,08,546
Total fund: Rs 17,08,546
Result: In 10 years, a strong and secure fund of Rs 17 lakhs+ can be created through RD alone.
Is there any loan facility available under the RD scheme?
Another major feature of the Post Office RD scheme is the loan facility. If ever funds are required after opening the account, investors can take a loan against the deposited funds. This facility makes this scheme more attractive.
As per the rules-
The account should be matured for at least 1 year.
Up to 50% of the fund amount can be taken as a loan.
Only 2% additional interest will be paid on the loan.
This scheme also provides an option for premature closure.
If required, the investor can close the account after 3 years.
In case of death of the account holder, the nominee can claim the account or continue the investment if he wishes.
Who is this scheme best suited for?
The Post Office RD scheme is especially beneficial for-
Employed individuals who want to save from their salary every month.
Planning for retirement.
- Parents creating funds for their children’s education or marriage.
- Investors looking for safe investments with low risk.
- You can become rich by saving just Rs. 333 every day
So, if you want to build a large fund for the future with small daily savings, then the Post Office Recurring Deposit (RD) scheme can be a good option for you. The combination of small daily savings of just Rs. 333, fixed interest and government guarantee makes this scheme very reliable. So, if you want to make a safe and sound financial plan for the future, you can definitely consider the Post Office Recurring Scheme.
(Note: This news is based on general information, for more details, consult a financial advisor.)