In today’s world, many people want to earn more money, and one way to do this is by investing in small saving schemes like the Post Office Recurring Deposit (RD) scheme.
This is a safe way to grow your money, with no risk involved. The more money you invest, the higher the returns you will receive.
By investing just Rs 5000 every month, you can accumulate up to Rs 8 lakh. If you deposit Rs 10,000, you can create a fund of up to Rs 16 lakh.
Key Features of the Post Office RD Scheme
The Post Office RD is backed by the Government of India, which guarantees the safety of your money. Unlike bank deposits, which are only insured up to Rs 5 lakh, there is no maximum limit for investment in the post office RD.
The scheme offers 6.7% interest, compounded quarterly, and the maturity period is 5 years, which can be extended for another 5 years.
You need to deposit a minimum of Rs 100 every month, and there is no maximum limit. The RD can be opened in both single and joint accounts.
How to Grow Your Fund
For example, if you deposit Rs 5,000 each month for 10 years, you will receive Rs 8,54,272 at maturity, based on the current 6.7% interest rate.
Important Rules and Penalties
If you miss a payment, a penalty of Rs 1 for every Rs 100 will be charged. This means a 1% penalty for missed payments. If you miss four installments, your account will be closed.
Additional Benefits
After one year, you can take a loan of up to 50% of the amount you’ve deposited, which must be repaid with interest.
Additionally, you can transfer your RD account from one post office to another. You can even deposit installments online using an IPPB savings account.
