Recurring Deposit: Do you also want to earn big profits by saving a little every month, then the Recurring Deposit (RD) scheme of the post office can be the best option for you.
In this scheme, you can deposit small amounts every month, and after five years you can raise a good amount. Let’s know everything about this scheme.
Amazing savings, Tremendous profit
In the RD scheme of the post office, you can start with at least Rs 100 every month. At present, this scheme is getting 6.7% interest annually, which is quite good compared to the market. Interest is received every six months.
Special features of this scheme
Joint account: You can open a joint account in this scheme alone or with 2-3 people.
Account for minors: You can also open an RD account in the name of your children below 18 years of age.
Loan facility: After 12 months, you can take a loan of up to 50% of your deposit amount.
Flexible deposit amount: You can deposit any amount from Rs 100 at your convenience.
Regular income: The interest received every six months can become a source of your regular income.
Benefits of this scheme
Safe investment: The post office is a government institution, so your money is completely safe here.
The habit of regular savings: This scheme helps you in getting into the habit of saving every month.
Attractive returns: Here you get more interest than a bank savings account.
Tax benefits: Investment made in this scheme is eligible for tax exemption under Section 80C of the Income Tax Act.
Understand with an example
Suppose you deposit Rs 4500 every month. In one year your deposit amount will be Rs 54,000. In five years this amount will become Rs 2,70,000. At a 6.7% interest rate, after five years you will get additional interest of about Rs 51,147. That is, on maturity, you will have a total of Rs 3,21,147.
The RD scheme of the post office is an excellent option for those who want to secure their future by making small savings.
This scheme not only inculcates the habit of saving in you but also gives good returns while keeping your money safe. If you also want to fulfill your financial goals, then definitely consider the RD scheme of the post office.
