You don’t need a large amount to start investing. You can begin with your small savings. The most important things in investing are discipline and patience. Even if you invest a small amount every month, you can build a large sum over time. The Post Office’s guaranteed return RD scheme can help you with this. It is a government-backed scheme, and the interest rate is revised every three months. After maturity, you get a lump sum amount including interest.
Post Office RD Interest Rate
The Post Office offers a 5-year Recurring Deposit (RD) scheme. It currently gives an annual interest rate of 6.7%, which is compounded every three months. You can start investing with just Rs 100 per month. There is no upper limit on how much you can invest.
Maturity Can Be Extended Beyond 5 Years
You can extend the RD maturity by another 5 years after the initial 5-year term. Also, after you deposit 12 monthly installments and your account completes 1 year, you can take a loan of up to 50% of the amount saved. The loan interest rate will be ‘RD interest rate + 2%’.
How to Get Rs 15 Lakh in 5 Years
If you deposit Rs 21,000 every month in the Post Office RD scheme for 5 years, you will get around Rs 14,98,682 on maturity. Out of this, Rs 12,60,000 will be your total deposit, and Rs 2,38,682 will be the interest earned.
If You Extend for 5 More Years
If you extend your RD for another 5 years, your total amount will grow even more. After 10 years, you will get around Rs 35,87,944. In this, your total deposit will be Rs 25,20,000, and you will earn Rs 10,67,944 as interest.