Post Office RD: If you are looking for a safe investment, then Post Office’s Registered Deposit (RD) scheme can prove to be a great option for you.
What’s special about Post Office RD?
This scheme is government-backed, ensuring the safety of your deposits. The current interest rate on Post Office RD is 6.7% per annum, updated every three months. Investments in this scheme can start with a minimum of ₹100, and there’s no maximum limit, meaning you can invest as much as you can afford.
Who can open an account?
Any Indian citizen can open a Post Office RD account. The account can be opened by a single individual or by three adults as a joint account. Additionally, a guardian can open an account in the name of a minor, and children over the age of 10 can also open their own RD accounts.
Maturity Period and Loan Facility
This plan has a maturity period of 5 years, which you can extend if needed. Furthermore, after one year of account opening or after 12 monthly installments, you can also avail a loan up to 50% of the deposit amount. This facility proves helpful in meeting emergency needs.
How can you build a large corpus?
Suppose you invest Rs 15,000 per month in a Post Office RD with a tenure of 10 years (120 months). Your total deposit on this investment will be Rs 18 lakh. At an annual interest rate of 6.7%, you will earn a total interest of Rs 7.62 lakh after 10 years. This will bring your total corpus to approximately Rs 25.62 lakh.
