Are you looking to invest in something that is reasonably safe and gives high returns without being exposed to market risks? The Post Office Recurring Deposit (RD) Scheme is a savings plan backed by the government that gives you a chance to safely grow your money at guaranteed returns.
Start with investing an amount as small as just ₹100 and manage to deposit ₹200 or more every month for the next 7.5 years! That will help you accumulate more than ₹6 lakh! Let’s discuss how this low-risk, high-reward scheme operates and why it makes sense for long-term saving.
Why You Should Prefer Post Office Recurring Deposit Scheme
This is one scheme that puts zero risk on the investor’s shoulders while offering steady returns when compared to the ups and downs of the stock market and mutual funds. It is meant for those salaried, homemakers, and small investors seeking fixed income with no desire to monitor whether the market is crashing tomorrow.
Key Benefits:
- Invest as little as ₹100 – Need not invest a hefty amount
- Flexibility of deposits – Invest whatever amount one wishes to in a month
- Quarterly interest – Earn regular cash flow
- Loan facility – Avail loan against RD up to 50% of the deposit amount in case of emergencies
- Government-backed scheme – 100% safe with guaranteed returns
How to Make Over ₹6 Lakhs in 7.5 Years
Here’s a quick overview of how a small monthly deposit can mature into big wealth:
- Monthly Deposit: ₹6,000
- Tenure: 90 months (7.5 years)
- Total Investment: ₹5,40,000 (₹6,000 x 90 months)
- Interest Earned: ₹1,36,995 (current 5.8% p.a. interest)
- Final Maturity Amount: ₹6,76,995
This means that just by saving ₹6,000 every month, you will have effectively doubled your investment in less than ten years!
Who Can Invest In Post Office RD?
- Indian citizens above the age of 18
- Parents/guardians can open accounts on behalf of minors.
- Suited for those who have long-term savings for planned expenditures.
FAQs
- What is the Post Office RD interest rate as of now?
The Post Office RD is offering an interest rate of 5.8% per annum compounded quarterly. - Is the interest taxed?
Yes, in case your total income crosses the tax-free limit, the interest derived is taxable. - Is it possible to withdraw money before the maturity date?
In case of premature withdrawal, the amount can be withdrawn only after three years, though some penalties might apply. - How do I open a Post Office RD account?
To begin your investment, proceed to the nearest Post office with ID proof, address proof, and passport-size photographs.