post office
Investors always look for such options where their money is safe and they also get good returns. In such a situation, the Recurring Deposit (RD) scheme of the post office emerges as a reliable option. At present, around 6.70% annual interest is being given on RD, which makes it attractive for small investors.
What is Post Office RD Scheme?
Recurring deposit is a scheme in which you deposit a fixed amount every month. This scheme is for 5 years and on maturity you get interest along with the deposited amount. The special thing is that you can start with just ₹ 100 per month.
Loan facility is also available
A big feature of RD is that in it you also get the facility to take loan. If you deposit installments continuously for 12 months, you can take a loan up to 50% of the amount deposited in your account. There is no need to break RD for this and the interest rate is also lower than a personal loan.
Great option for small investors
This scheme is considered completely safe, because it is government supported. There is very little risk in this and a good fund can be created even with small savings. For those who do not have a lot of money to invest in lump sum, this is an easy and effective method. If you want to gradually build a big fund with safe investments, then Post Office RD Scheme can prove to be a good option for you.
