post office scheme
In today’s era, everyone wants that their future should be secure and there should be no stress regarding money. If you also want to gradually build a big fund by staying away from risk, then post office schemes can be a reliable option for you. There is a government guarantee in these and the returns are also fixed. One such popular scheme is the Post Office Recurring Deposit (RD) scheme.
The biggest feature of Post Office RD is that investing in it can be started with a very small amount. Designed keeping in mind the budget of the common man, this scheme is best for those who want to gradually build a big fund from their everyday savings. Currently, investment in this gives 6.70% annual interest, which is compounded on quarterly basis. Since it is a government scheme, the money remains completely safe in it.
Who can open RD account?
This scheme is available to almost every Indian citizen. Be it an employee, a businessman or a student, everyone can open an account in it. RD can also be started in the name of children above 10 years of age. The account can be opened both by visiting post office or online. It is necessary to update KYC after completing 18 years of age.
Option to further extend the period of RD
The basic tenure of Post Office RD is 5 years. The special thing is that after maturity it can be extended further for 5 years. That means you can continue investing in this scheme for a total of 10 years. After completion of three years, the facility to close the account is also available if needed. In case of death of the account holder, the nominee can claim the money and if he wishes, he can continue the RD further.
How to get Rs 17 lakh by saving Rs 333 daily?
Now let’s talk about the actual calculations. If you save around Rs 333 daily, then an investment of around Rs 10,000 is made in a month. Your total deposit amount in 5 years becomes around Rs 6 lakh. During this period you can get interest of around Rs 1.13 lakh.
If you extend the RD for another 5 years, the total investment period becomes 10 years. By then your total deposit reaches around Rs 12 lakh and the interest increases to around Rs 5.08 lakh. That means on maturity you can get funds worth around Rs 17.08 lakh. This scheme is also beneficial for those who invest less. For example, on an RD of Rs 5,000 per month, you can get around Rs 8.5 lakh in 10 years.
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