Post Office Scheme: If you are considering a safe investment, this news could be very significant for you. Nowadays, everyone wants to build a substantial corpus through small savings. The Post Office Recurring Deposit (RD) scheme can help you achieve this. Notably, under this government scheme, you can build a fund worth lakhs of rupees by depositing just ₹167 daily—or ₹5,000 per month.
If you consistently maintain this investment, you can accumulate a corpus of up to ₹8.5 lakh by the time of maturity. With continuous investment, you earn over ₹2.5 lakh in interest in addition to your principal amount. Let us explore the details.
Save ₹167 Daily
You do not need to invest a large lump sum in the Post Office RD scheme. By saving approximately ₹167 daily, you can easily deposit ₹5,000 at the end of the month. You can open an account with a monthly deposit of just ₹100 and increase your investment according to your financial capacity.
Know the Interest Rate
Currently, the Post Office RD scheme offers an annual interest rate of 6.7%. You can open both single and joint accounts under this scheme. The scheme has a maturity period of 5 years, but investors can extend it for another 5 years after maturity. This means you can continue investing for a total of 10 years.
Pay Instalments on Time
Instalments must be deposited by the scheduled date each month. If you miss a monthly payment, a penalty of 1% per month is charged on the outstanding amount. Furthermore, if you miss four consecutive monthly instalments, the RD account is closed under Post Office regulations.
Fund accumulation with a monthly deposit of ₹5,000
If you invest ₹5,000 per month in the Post Office RD scheme, your total investment over 5 years will amount to ₹3 lakh. With an interest rate of 6.7%, you will receive ₹3,56,830 upon maturity. If you subsequently extend the scheme for another 5 years, your total deposit over 10 years will reach ₹6 lakh. During this period, you will earn approximately ₹2,54,272 in interest, bringing the total maturity fund to ₹8,54,272.
What happens if you save ₹167 daily?
If you save ₹167 daily and deposit ₹5,000 per month into the RD scheme, your total investment will amount to ₹3 lakh over 5 years. Upon maturity after 5 years, the accumulated amount will be ₹3,56,830. If you extend the scheme for another 5 years, the total fund over 10 years will reach ₹6 lakh. You will earn approximately ₹2,54,272 in interest, raising the total maturity amount to ₹8,54,272.