Post Office Scheme: Want to create big fund for the future? But cant figure out how? Then this article is made for you. The Post Office offers a variety of government schemes, with small savings capable of generating significant funds. An example is the Post Office Recurring Deposit Scheme, where an investment of Rs 300 daily can amass a corpus of Rs 1.5 million.
Government-backed and secure
The Post Office RD scheme is well-liked and does not necessitate a large initial deposit. Similar to a mutual fund Systematic Investment Plan (SIP), small investments in government schemes, maintained consistently over time, can result in substantial profits. These are risk-free savings options, as the government guarantees the security of your investments.
Opening an account requires just Rs 100
Investing small amounts in the Post Office Recurring Deposit Scheme can grow into substantial savings due to the attractive returns provided by the government. This scheme offers an impressive interest rate of 6.7%. You can commence a Post Office RD account at any post office with an initial deposit of only Rs 100. There is no limit to the maximum investment, allowing you to invest as much as you desire.
Joint account option, maturity duration
You have the choice of opening an individual or joint account with the Post Office RD. Additionally, the maturity period for this government scheme is five years, extendable for an additional five years to enhance your earnings. To accumulate Rs 1.5 million through a recurring deposit scheme (RDS), you simply need to save Rs 300 daily for investment.
This translates to saving Rs 9,000 monthly, resulting in a total deposit of Rs 5.4 lakh, with Rs 102,291 being the interest alone upon maturity. Consider prolonging your investment for an additional five years without withdrawing the deposit. This action will lead to a total corpus of Rs 15,37,692, with interest earnings of over Rs 4.57 lakh.
Key rules to remember before investing
Before opening a Post Office RD account, it is important to be aware of a rule: failing to pay your installment on time will incur a 1% monthly penalty. Missing four consecutive installments will automatically close your recurring deposit account.