Post Office Recurring Deposit Scheme Offers 16.26 Lakh After Maturity; Know Calculation

The Post Office is one of the most preferred options for the salaried middle class in India, who want to look for investing in risk free options that offer good returns. The post office has a number of schemes, and provides better returns than bank FDs and RDs. While investing in Fixed Deposits or Savings Accounts at banks is one option, another great alternative investing your money through the Post Office Savings Scheme, or more specifically, the Post Office Recurring Deposit Account.

The post office RD scheme is one of the best options investors might find in the market to invest in, given its high amount of returns.

A post office recurring deposit account can be opened by any adult or a child over the age of 10 years. The minimum amount for monthly deposit is Rs. 100 and depositors can pay above minimum amount in multiples of Rs. 10 each month, as per the India Post website. Post office RD gives an interest rate of 5.8 per cent per annum, effective from July 2022. This interest rate is compounded quarterly. The central government fixes the interest rates of its small savings schemes every quarter.

The Post Office RD account matures after five years or 60 months from the date of opening. A depositor can also close an RD account at the post office after three years and can take a loan up to 50 per cent after one year from the date of account opening. If the account is closed prematurely, even one day before maturity, interest rates will be applied on basis of Post Office Savings account. A Post Office RD account can be retained up to 5 years from the date of maturity without deposit also.

Through this method, both your money and the interest you garner over time are safe and secure. It should also be noted that the potential risk is relatively negligible while still providing good returns. If someone is looking to invest in something that will fetch high returns by investing small amounts of money regularly, opening a Post Office Recurring Deposit Account is a great way to start.

It is also worth noting that Post Office RD, or Post Office Recurring Deposit, allows applicants to withdraw up to 50 per cent of their deposit balance a year after the account has been opened.

Post Office RD Scheme: Get Rs 16 Lakh by Investing This Amount

If you invest Rs 10,000 every month at the current interest rate of 5.8 per cent, then in 10 years’ time that amount would compound to give you around Rs 16 lakh in returns. Your total deposit for 10 years will be 12 lakh, and the estimated return will be around Rs 4.26 lakh. Therefore, the total return you will get will be Rs 16.26 lakh. The compound interest is calculated every quarter, making it highly effective as it helps investors generate earnings on a frequent basis.

Read all the Latest News, Breaking News, watch Top Videos and Live TV here.