If you want to build a large fund in the future with safe investments, then the Post Office Small Savings Schemes can be a great option for you. Since these schemes are guaranteed by the government, there is almost no risk. One such popular and reliable scheme is the Post Office Recurring Deposit (Post Office RD) Scheme.
What is the Post Office RD Scheme?
In the Post Office Recurring Deposit Scheme, a large fund can be built at the end of a specified period by depositing a fixed amount of money every month. Currently, the annual interest rate in this scheme is about 6.7% (with quarterly compound interest). Although the period is usually 5 years, the RD can be increased repeatedly if necessary.
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The biggest feature of these schemes is that the interest rate is reviewed and revised every three months, so investors get the opportunity to profit in line with the market situation. Here you can start investing with just 100 rupees.
5-year maturity period
Anyone can easily open an account in this government savings scheme (PO RD Scheme) of the Post Office. The biggest attraction of this scheme is that there is an opportunity to open an account for minors as well.
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Facility to close the account before maturity
The Post Office Recurring Deposit (PO RD Scheme) scheme offers several additional facilities to investors. One of these is the facility of pre-mature closure. If an investor wants to close the account before maturity due to any personal or emergency reason, then he can choose this option after completing 3 years.
It has the facility of getting the deposited money in emergency situations.
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What happens if the account holder dies?
If the account holder dies for any reason, then the nominee can easily claim the deposited money. Not only that, but the nominee also gets the opportunity to continue this RD account as before if he wants. As a result, the family gets financial security and the savings process does not stop.
It has the facility of getting the deposited money in emergency situations.
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Amount to deposit from 400 Rs to 20 lakh
Now let’s understand how it is possible to create a fund of more than 20 lakh taka by regularly saving just 400 taka in this government scheme of the post office. In fact, the entire calculation is quite simple.
Let’s say an investor is saving 400 taka every day. That is—
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Monthly savings: 12,000 Rs This money is being deposited regularly in the Post Office Recurring Deposit (PO RD Scheme).
How much money will there be in 5 years?
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According to the Post Office RD Calculator, if someone invests 12,000 taka per month for 5 years, then—
Total investment amount: about Rs 7.20 lakh
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Total fund at the end of 5 years: Rs 8,56,388
This additional part comes from interest.
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What happens if you extend it for another 5 years?
If the investor extends the RD account for another 5 years after the completion of the first 5 years, then the returns become more attractive in the long run.
Total investment (in 10 years): Rs 14.40 lakhs
Total funds received at maturity: Rs 20,50,248
Income from interest only: Rs 6,10,248