Power of small savings: If small savings are made a habit of regular investment, then even a small amount can easily create a fund of lakhs.
Power of small savings: If small savings are made a habit of regular investment, then even a small amount can easily create a fund of lakhs. It is not necessary that you have a large amount, then only you can invest. There are many such government schemes, in which investment can be started with just Rs 100. One of these schemes is the Post Office Recurring Deposit Scheme (5-Year Post Office Recurring Deposit Account).
If you keep a target of saving 100 rupees every day, then you will save about 3000 rupees in a month. If this amount is deposited every month in the recurring deposit (RD) of the post office, then in the next five years, a fund of more than Rs 2 lakh will be ready. The special thing in this is that there is no risk on the deposit in the post office and your money remains completely safe.
Post Office RD: Big fund from small savings
A regular deposit every month in the Post Office Small Savings Scheme RD will gradually become a big fund. According to the information available on the website of the post office, you can start investing in Recurring Deposit (RD) at the post office with just Rs 100. It has this facility that once the account is opened with Rs 100, you can make further deposits in multiples of Rs 10-10. There is no maximum investment limit in this.
Post office RD is currently getting 5.8% annual interest. In this, the interest is compounded on a quarterly basis. In this, if you deposit Rs 3000 every month according to daily savings of Rs 100, then after maturity in five years (60 months), you will get about Rs 2.10 lakh. In this, the interest income will be more than 29 thousand.
Post Office RD: Account will be opened with Rs 100
RD account can be opened in any branch of the post office for just Rs 100. In this, any number of accounts can be opened by a person. In this, apart from single, a joint account can be opened up to 3 persons. Guardian account can be opened for minors. The maturity of post office RD account is 5 years. But, pre-mature closure can be done after 3 years.
Post Office RD: Loan facility too
Loan can also be taken against RD account in the post office. The rule is that after depositing 12 installments, a loan can be taken up to 50 percent of the amount deposited in the account. The loan can be repaid in a lump sum or in installments. The interest rate of the loan will be 2 percent more than the interest on RD. It also has the facility of nomination. At the same time, after maturity, the RD account can be continued for a further 5 years.
