Post Office RD Scheme
Post office scheme 2025: In today’s era, when most of the investment options are subject to market fluctuations, everyone is looking for a scheme where the money is not only safe but also gives a fixed and strong profit on it. If you are also looking for a similar guaranteed return scheme, then your search ends at the post office. There is zero risk in these government guaranteed schemes. One of the best schemes among these is the Post Office Recurring Deposit (RD) Scheme, which has the power to convert small monthly savings into a huge amount in 5 years.
What is this scheme?
Post Office Recurring Deposit (RD) is a monthly savings scheme. It is best suited for those who cannot invest a large lump sum but want to create a large corpus for the future by saving a fixed amount every month. In this scheme, you have to deposit a fixed amount every month continuously for 5 years (i.e. 60 months).
At present, the post office is offering an attractive annual interest rate of 6.7% on this RD scheme. The most special thing about this scheme is that the interest is calculated on a monthly basis (Compounded Monthly). This means that you get interest not only on the principal amount but also on the interest received every month, which increases your profits rapidly. This is a lock-in scheme for a period of 5 years, which ensures that your savings keep growing in a disciplined manner.
Understand the mathematics of getting ₹ 17.84 lakh in 5 years
If an investor invests ₹ 25,000 every month in this scheme, then he will deposit a total of ₹ 15,00,000 (15 lakh) in 5 years i.e. 60 months. According to the current interest rate of 6.7% and monthly compounding, he will get a net interest of approximately ₹ 2,84,148 on this investment of Rs 15 lakh. In this way, after 5 years on maturity the investor will get back a total amount of ₹ 17,84,148. This is a government guaranteed scheme, so there is no market risk in this return. It is not necessary that you start with ₹ 25,000 only. You can make a big fund even with a small amount as per your capacity.
- On investment of ₹10,000 per month: You will get approximately ₹7,13,659 after 5 years.
- On investment of ₹5,000 per month: You will get approximately ₹3,56,830 after 5 years.
Who can avail the benefit of this scheme?
post office Another feature of the RD scheme is its accessibility. This scheme is available to every Indian citizen.
- Eligibility: Any adult Indian citizen can open a single or joint account. Apart from this, parents can also open and operate this account in the name of their minor child above 10 years of age.
- Minimum and Maximum Investment: It is very easy to invest in this scheme. You can start it with a minimum amount of just ₹ 100 per month. The special thing is that there is no maximum limit for investment in it. You can choose any amount of monthly investment as per your financial capacity.
Keep these things in mind before investing
While investing in this scheme, it is very important to know some rules. Plan to invest in it only after understanding it properly.
- Loan facility: If you need money before the 5 year period, you do not need to break the scheme. After 1 year of opening RD account (12 installments deposited), you can also take a loan on the basis of your deposited money.
- pre-mature closure: Although this is a 5 year scheme, but after completion of 3 years you can close it prematurely i.e. pre-mature.
- Late Fee: It is important to keep in mind that the installment has to be deposited by the due date of every month. In case of delay in installment, a nominal penalty of ₹1 on ₹100 has to be paid.
- Nomination: It is a very wise step to enter the name of the nominee i.e. the heir while opening the account. If unfortunately the investor dies, the deposit amount and the entire interest easily passes to the nominee.