Post Office RD Scheme: The Post Office Recurring Deposit (RD) scheme is an excellent option for investors looking for safe and regular savings. If you invest ₹25,000 per month in this scheme, you could have a corpus of approximately ₹17.74 lakh after 5 years.
The Post Office Recurring Deposit (RD) scheme is a safe and reliable savings option that helps you build a substantial corpus with small monthly investments. If you invest ₹25,000 per month in this scheme, your deposit not only grows but also yields a total of approximately ₹17.74 lakh after 5 years. You earn 6.5 percent annual interest, compounded monthly. The initial investment will be a total of ₹15 lakh, and you’ll earn an additional ₹2.74 lakh in interest, boosting your savings.
The most important feature of Post Office RD is that you can make monthly deposits starting at a minimum of ₹100 and with no maximum limit. You can open it individually or jointly (e.g., between two or three people). Deposits can be made in cash or by check, depending on your convenience. In the event of the account holder’s death, the deposit is passed on to their legal heirs, simplifying matters.
This scheme requires investments to be made on a specific date each month, and if you don’t make timely deposits, you’ll incur a small penalty. Despite this, the scheme remains attractive to investors because it’s fully guaranteed by the government. After five years, you can withdraw your deposit or extend it for another five years, allowing your savings to grow even further.
Loans are also available against your Post Office RD account after 12 monthly installments. You can avail up to 50 percent of your deposited amount as a loan. The loan is repaid with interest, which provides flexibility to this scheme.
This plan is especially suitable for those who want to achieve their mature financial goals through regular and safe investments. Post Office’s widespread presence and reliable processes make it popular among investors, both ordinary and elite, across the country. This plan is a simple and effective way to convert your small savings into solid capital, helping you achieve financial prosperity within five years.
