The government runs many types of schemes for every section of the society; Notably, small savings schemes are available to all Indians. From poor to middle class, anyone can invest in these schemes to get good returns without any risk. Today we are talking about one such scheme—which is part of the small savings schemes of the post office—and gives good returns on maturity.
This popular scheme of the government is ‘Post Office Recurring Deposit’ (RD), in which any Indian citizen can invest. Investments can be made every month, starting from as low as ₹100. There is no maximum limit on the investment amount; You can invest as much as you want.
Investors get an interest rate of 6.7% in the Post Office RD scheme. The maturity period of this scheme is 5 years, which can be extended further. Additionally, you also have the option to open two separate RD accounts, each with a maturity period of 5 years.
Loan facility is also available under Post Office RD Scheme. People can take loans against their deposits; After depositing for one year, loan can be taken up to 50% of the total amount deposited.
Premature Exit
If you want to exit the scheme prematurely, you can do so after running the account for three years. However, in such a situation you will not get the interest rate of a normal RD plan; Instead, the interest rate applicable will be as per the post office savings account.
On the contrary, if you want to continue the plan even after the initial maturity, you can extend it for another 5 years after the completion of the first 5 years tenure. Investment can be made continuously in this scheme for a total of 10 years. It offers a fixed interest rate of 6.7 percent. However, this rate may change after quarterly review.
Minors can also invest
Minors are also eligible to invest in this scheme; Parents or guardians can invest on their behalf. Apart from this, joint account can also be opened under this scheme.
How to deposit ₹16 lakh through this scheme
Suppose a person invests ₹9,500 every month in a post office RD scheme; So they will get 6.7 percent interest annually. After five years, the total deposit amount will be ₹6,77,980, which will include interest of ₹1,07,980. If the investment is continued for another five years—a total of 10 years—the total amount will increase to ₹16,23,123, of which ₹4,83,123 will be interest. Over this 10 year period, the total principal deposited in the RD scheme will be ₹11,40,000.
