Post Office RD Scheme: If you invest 10 thousand rupees every month in the RD scheme of the post office for 10 years, then after 10 years you will get more than 16 lakh rupees at the rate of 5.8%.
New Delhi. There is a risk factor associated with any investment. People invest according to their ability. If you are one of those people who do not want to take risk then post office small savings schemes can be the best option for you. Today we are going to tell you about a scheme of post office where the risk is negligible and the returns are also good. We are talking about Post Office Recurring Deposit.
How to start investing in Post Office RD?
Post Office RD Deposit Account is a government guaranteed scheme to deposit small installments with better interest rate, in this you can start investing with a small amount of just Rs 100. There is no maximum investment limit, you can invest as much money as you want.
The account for this scheme is opened for five years. However, banks offer the facility of recurring deposit accounts for six months, 1 year, 2 years, 3 years. Interest is calculated every quarter (at annual rate) on the money deposited in it and it is added (including compound interest) to your account at the end of every quarter.
5.8% interest will be available
At present, interest of 5.8% is being available on Recurring Deposit Scheme, this new rate is applicable from 1st April 2020. The Government of India fixes the interest rates of all its small savings schemes every quarter.
Will get Rs 16 lakh lakh
If you invest 10 thousand rupees every month in the post office RD scheme for 10 years, then after 10 years you will get more than 16 lakh rupees at the rate of 5.8%.
- Rs.10,000 invested every month
- Interest 5.8%
- Maturity 10 years
- Maturity amount after 10 years = Rs 16,28,963
Important things about RD account
You will have to keep depositing money regularly in the account, if you do not deposit the money then you will have to pay a penalty of one percent every month. Your account is closed after 4 installments are missed.
Tax on Post Office RD
TDS is deducted on investment in recurring deposits, if the deposit exceeds Rs 40,000 then tax is levied at the rate of 10% per annum. Interest earned on RD is also taxable, but the entire maturity amount is not taxed. Investors who do not have any taxable income can claim TDS exemption by filing Form 15G, as is the case with FDs.
Apart from the post office, government and private banks also provide the facility of recurring deposit.
Recurring Deposits of Banks
Bank RD Rates Duration
- Yes Bank 7.00% 12 Months to 33 Months
- HDFC Bank 5.50% 90/120 Months
- Axis Bank 5.50% 5 Years to 10 Years
- SBI Bank 5.40% 5 Years to 10 Years
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
