There is no risk of any kind by investing in any scheme of Post Office
Post Office Recurring Deposit: If you want to invest and want to be completely safe, that is, you do not want to take any kind of risk, then Post Office can be a better option for you. Along with investing, it also gives better returns. Small saving schemes of the post office are better. Investing with low cost in it leads to hefty earnings. One such post office scheme is named – Post Office Recurring Deposit. In this you get better returns.
What is Post Office Recurring Deposit
Overall, through this scheme you can start investing with very little money. Apart from this, your money will also be completely safe. You can invest in it from Rs 100 per month. There is no limit to the maximum amount you can invest. The post office RD deposit account is a government guarantee scheme of depositing small installments with better interest rate.
Know how much interest will be earned
The RD account that opens in the post office is for 5 years. Does not open for less than this. Every quarter (at the annual rate), interest is calculated on the deposits. Then it is added to your account with compound interest at the end of every quarter. According to the India Post Office website, 5.8% interest is currently being paid on RD scheme. This new rate is applicable from 1 July 2020. The central government has announced interest rates every quarter in all its small saving schemes.
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If you invest 10 thousand rupees, you will get more than 16 lakhs
If you invest 10 thousand rupees every month in the post office RD scheme, that too for 10 years, then it will get Rs 16.28 lakh on maturity.
Some special things about RD account
If you do not deposit RD installments on time, you will have to pay a fine. If the installment is delayed, you will have to pay a penalty of one percent every month. With this, if you do not deposit 4 consecutive installments, then your account will be closed. However, once the account is closed, it can be activated again for the next 2 months.
