Post Office Scheme : When it comes to growing your money safely and reliably, most people opt for bank FDs or post office schemes. Bank FDs are well-known, but post office schemes are also very beneficial, especially for small investors. These ensure your money is safe and your returns are fixed. If you want to invest small amounts regularly, the post office recurring deposit (RD) scheme could be an excellent option.
What is Post Office RD Scheme?
Investors in the Post Office RD scheme make monthly deposits at their convenience. The biggest advantage of this scheme is that your money is safe and the interest rate is fixed. Currently, the Post Office RD scheme offers an interest rate of 6.7 percent.
The maturity period of this scheme is 5 years. This means that after 5 years, you can receive a lump sum of your deposit and interest. You can start investing with just Rs 100 per month. There is no maximum investment limit in this scheme, so you can invest as much as you are comfortable with.
How to create a fund of Rs 10.70 lakh by investing every month?
If you want your corpus to reach Rs 10.70 lakh in 5 years, you’ll need to invest Rs 15,000 every month in an RD. Continuing this investment for 5 years will result in a total deposit of approximately Rs 9 lakh. The interest earned during this period will be approximately Rs 1.70 lakh. In this way, small investments can build a substantial corpus over time. This RD scheme is ideal for those who are saving monthly and want to grow it gradually.
Benefits of RD Scheme
This scheme has many benefits. Your money is safe, you earn a fixed interest on your monthly deposits, and you can start with a small investment. Investing in this scheme can generate good returns over the long term.