Post Office Schemes: If you want to keep your money safe and earn a good income, Post Office small savings schemes are a very reliable option. One such scheme is the Post Office Recurring Deposit (RD). By depositing small amounts every month, you can build a large corpus for the future. Since this scheme is government-guaranteed, the risk is very low.
Offering 6.7% annual interest
Post Office RD is ideal for those who want stable returns, independent of market fluctuations. Currently, this scheme offers 6.7% annual interest, which is higher than many other safe investments. If you deposit ₹5,000 every month, the interest earned after 5 years and then with extensions, can generate substantial savings.
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Understand the calculation here
Suppose you deposit ₹5,000 every month for 5 years. After this, the total investment will reach ₹300,000. Investors receive interest at a rate of 6.7%. This yields approximately ₹56,830. After 5 years, the total amount will be ₹356,830.
If you extend the RD for another 5 years, your total deposit will reach ₹6 lakh. The total interest earned over 10 years is approximately ₹254,272. This means you will have approximately ₹854,272 in hand after 10 years.
Easy to Start Investing
A special feature of this scheme is that it doesn’t require a large sum of money. You can open an RD account by depositing just ₹100. This account can be opened easily by visiting any nearby post office. If necessary, you can close the account before maturity.
Loan facility is also available
If you have been making regular deposits in an RD for at least one year, you can also avail a loan against this account. You can avail a loan up to 50% of your deposit amount. This loan only costs 2% additional interest, which is significantly lower than typical market loan rates.