In today’s time, the post office is no longer limited to just sending letters, rather it has become a kind of mini bank. Here people get many reliable options for savings and investment, like FD, RD, Public Provident Fund (PPF), Senior Citizen Scheme and Monthly Income Scheme (MIS).
RD scheme is best for middle class
The Recurring Deposit (RD) scheme of the post office is considered very beneficial especially for the middle class. In this, you can create a big fund over time by depositing a small amount every month. It is better for those who cannot invest a large amount in lump sum.
Start investing with small amount
The special thing about this scheme is that you can open an account with just Rs 100. There is no upper limit on investment in this, that is, you can deposit as much as you want every month according to your income.
How much interest do you get?
At present about 6.7% annual interest is available in Post Office RD Scheme. This interest is added to your account every three months, which gives the benefit of compounding and your deposit increases rapidly.
How much will you get by depositing ₹3,500?
If you deposit Rs 3,500 every month, your total deposit in 5 years will be Rs 2,10,000. On maturity you will get around Rs 2,49,776. That means around Rs 39,776 will be received only as interest.
Why is this scheme special?
- Secure and government supported
- Develop a habit of regular savings
- Good returns from compounding
- Big fund ready with small investment
If you want to build a large corpus gradually without much risk, then Post Office RD Scheme can be a good option. With regular investment and patience, you can convert small savings into big money.