Be it planning for future needs, building an emergency fund or inculcating the habit of regular savings, this investment scheme from Post Office helps you grow your money over time without any hassles.
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The Post Office (India Post) offers several small savings schemes for the general public. One notable one is the National Savings Recurring Deposit (RD) account. Backed by the Government of India, this Post Office RD scheme is a disciplined and secure savings option, offering guaranteed returns. You can start investing with a small amount and build a substantial corpus over a period of time.
What is the Scheme?
The Post Office RD Scheme is a monthly investment plan in which you deposit a fixed amount every month for 5 years (60 months). This deposit earns quarterly compounded interest, making it a good option for those seeking low-risk and stable returns. This scheme is not market-linked, so it is not affected by stock market fluctuations. Just keep in mind that NRIs (Non-Resident Indians) cannot currently open accounts under this scheme.
Key Features of the Post Office RD Scheme
The Post Office RD Scheme currently offers an interest rate of 6.7% per annum (quarterly compounded). The investment period is 5 years (60 months). You can start investing with just ₹100 per month (in multiples of ₹10). There is no maximum amount limit. You can deposit money through cash, check, or online transfer. Furthermore, you can also make installment payments for up to 5 years at a time. By linking your savings account, you can have your monthly installment automatically deducted.
Who can open a Post Office RD account?
Several categories of people can open an account under this scheme. In addition to adults, minors aged 10 years or older can also open an account in their own name. Joint accounts are also available.
Understand the return on investing ₹2,000 per month
Interest on Post Office RDs is compounded quarterly. This means the principal amount grows with interest added every three months. If you deposit ₹2,000 per month in this scheme for 5 years, according to the Groww Post Office RD calculator, you will ultimately receive a return of ₹22,732. According to the calculation, you will deposit a total of ₹1,20,000 in 60 months. This means you will ultimately have a total corpus of ₹1,42,732.
