Post Office RD Scheme : Everyone wants to set aside some of their earnings and invest it in a way that not only keeps the money secure but also yields good returns. In this context, the small savings plans offered by the Indian Post Office are really popular. One such plan is the Post Office Recurring Deposit scheme, where you can earn up to Rs 2.54 lakh just from interest by making consistent investments. The government guarantees the safety of your investment.
The best part about government-backed savings schemes is that they are entirely risk-free. This means every investment you make is completely secure. When it comes to the Post Office Recurring Deposit Scheme, you can build up Rs 8 lakh by investing only Rs 5,000 each month, and the interest earned will exceed Rs 2.54 lakh. The government is offering an attractive 6.7% interest on investments in this small savings scheme.
Here’s the complete breakdown of earnings
Calculating the quick interest earnings under the Post Office RD Scheme is quite straightforward. You’ll need to invest Rs 5,000 every month in a recurring deposit account until the maturity period. The maturity period for this scheme is five years. Therefore, your total investment over this time will be Rs 3 lakh, and the interest earned at a rate of 6.7 percent will be Rs 56,830. This means that your total fund will reach Rs 356,830 in five years.
To get started, all you have to do is extend your RD for another five years. If you do that, your total deposit after 10 years will be Rs 600,000. With an interest rate of 6.7%, you’ll earn Rs 254,272 in interest. So, your overall deposit after 10 years will amount to Rs 854,272.
You can set up an account under the Post Office Recurring Deposit Scheme at any local Post Office. The cool part is that you can kick off your investment in this government scheme with just Rs 100. Plus, you have the option to close your account before the five-year maturity period is up.
Another great perk is that this RD scheme provides a loan facility against your investment. You can access this after keeping the account active for one year. According to the guidelines, you can take a loan of up to 50% of your deposit amount, and the interest rate is just 2%.
