Post Office RD: When it comes to future security, everyone wants to invest in a place where money is safe and can also generate good returns. In such times, the Post Office small savings schemes provide strong support.
One such scheme is the Post Office Recurring Deposit (RD), where you can build a large corpus by depositing a small amount every month. Due to the government guarantee, this scheme is considered extremely safe and carries very low risk.
6.7% Annual Interest: Promises Stable and Reliable Income
This scheme is ideal for those who want a fixed income while remaining immune to market fluctuations. Currently, Post Office RD offers an annual interest rate of 6.7%, which is much better than many safe investment options. If a person deposits Rs. 5,000 every month, after 5 years and then further extension, this amount can build a large corpus. This stable return is why people have been adopting it for a long time.
How does it feel like your money doubles? Understand the full calculation here.
Suppose you deposit ₹5,000 every month for 5 years. During this period, your total deposit is ₹3 lakh. At an interest rate of 6.7%, you earn approximately ₹56,830 in interest. Thus, after 5 years, you will have approximately ₹356,830 in hand.
If you extend your RD for another 5 years, your total deposit will reach ₹6 lakh. The total interest earned over 10 years reaches approximately ₹254,272. This means that at the end of 10 years, you will have approximately ₹854,272 in hand. This amount gradually grows to become a significant support without any risk.
Easy Start: An account can be opened for just ₹100
The most important feature of this scheme is that you don’t need a large sum of money to start it. An RD account can be opened by depositing just ₹100. This account is easily opened by visiting any nearby post office. If needed, you can close it before maturity. This is why students, working professionals, and housewives prefer it.
Loans are also available if needed.
If you have been making consistent RD deposits for a year, you can also take a loan against this account. The Post Office offers a loan of up to 50% of your deposit. This loan only requires an additional 2% interest, which is significantly lower than most loans available in the market. This means that in case of an unexpected need, RD does not abandon you, but rather helps.
Disclaimer: The interest rates and calculations given in this article are for informational purposes only. Before investing, please confirm the latest interest rates and terms with the post office or an official source.
Also Read:
Will EPF Salary Limit Finally Rise, Workers Hope for Major Reform
