Post Office RD Scheme: If you are looking for a risk-free investment, the Post Office RD Scheme (Recurring Deposit) can be a good option. Small investments give significant returns. An investment of ₹12 lakh can turn into over ₹14 lakh in 5 years.
When it comes to reliable, risk-free investments, many post office schemes often come to mind. One such scheme is the Post Office Recurring Deposit Scheme. Investments proceed in a safe and reliable manner. Investing in a Post Office RD Scheme is very easy. You can open an account with just ₹100 and deposit a fixed amount every month. The interest on the deposit is compounded every three months. The government currently sets an annual interest rate of 6.7%, which is reviewed quarterly. This means that your investment is completely safe and offers guaranteed returns.
Monthly investment of ₹20,000 will yield Rs 14.27 lakh
If an investor deposits ₹20,000 every month, the total investment will be ₹1.2 million in 5 years. At 6.7% interest, this will yield an interest of around ₹2.27 million. This means the total maturity amount will be Rs 14.27 lakh. This scheme not only provides stable returns but also offers better interest rates than bank FDs.
Security, Loan Facilities, and Tax Benefits
Post Office RD Scheme also offers several additional benefits to investors. The scheme is backed by the Government of India, so the investment risk is zero. In addition, loan facilities are available against the deposit amount, if required. On maturity, investors can increase their account or withdraw funds. In addition, investments made in this scheme are also eligible for tax deduction under Section 80C of the Income Tax Act.
Why is this scheme the most reliable investment?
In today’s times, when the stock market and mutual funds are volatile, the Post Office RD scheme emerges as a stable and safe option. This scheme is especially for those who want to create a safe fund for their future goals like children’s education, marriage or retirement by saving regularly.
