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Post Office RD: Invest Rs 25000 and get Rs 18 lakh on maturity, know how

National Savings Recurring Deposit Account (RD), also known as the Post Office Recurring Deposit scheme offers guaranteed returns. It has a fixed interest rate of 6.7 per cent per annum compounded quarterly. One can have individual or joint account and can start investing with a minimum of Rs 100 a month. The lock-in period is five years (60 months). The Post Office scheme also provides loan facility. Know more about the guaranteed return scheme and what your Rs 25,000 monthly investment will turn into in five years.

Post Office RD: The first aim of an investor is to earn money through their investment, and their nightmare is to lose it amid market volatility. In such a scenario, any return that is guaranteed attracts investors, and that’s probably the reason the charm of various Post Office schemes offering guaranteed returns never dies down. In a bouquet of various Post Office schemes offering guaranteed returns, National Savings Recurring Deposit Account (RD) remains a popular investment option. A large population in India seeking a return on their investment and a safe place to park their money finds RD a popular option. RD offers an interest rate of 6.7 per cent per year, and has a lock-in period of five years. One can deposit a minimum of Rs 100 or any amount in multiples of Rs 10. An RD account can also be opened at banks such as State Bank of India. Here we will show how much return you will get if you invest Rs 25000 a month (Rs 300000 a year and Rs 1500000 in five years) in a RD scheme. Before that, let’s go through some of the salient features of Post Office RD.

Minimum and maximum investments

An RD accountholder has to deposit a minimum of Rs 100 or in multiples of Rs 10 in a month. There is no limit on the maximum deposit.

Who can open an account?

An individual or up to 3 adults (Joint A or Joint B) can open the account.
A guardian can also open an account on behalf of a minor who is at least 10 years old.

Interest Rate

The guaranteed return scheme offers an annual interest rate of 6.7 per cent, which is compounded quarterly.

 Advance Deposit

One can also make advance deposits for up to five years in the account. These advance deposits can be made at the time of opening of the account or any time later on.

Loan

The investment scheme also offers loan facility.

After one has deposited 12 installments and their account is continued for one year, the investor can avail the facility up to 50 per cent of the balance credit in the account.

Maturity

The maturity period for Post Office RD is 5 years (60 monthly deposits) from the date of opening the account. However, the account can be extended for another 5 years by giving an application at a post office.

What will your Rs 15 lakh investment become in 5 years?

Since you deposit monthly installments in an RD account, for a Rs 15 lakh deposit in five years, your monthly contribution should be Rs 25,000. On maturity, you will get interest of Rs 284146 on Rs 15 lakh investment and your total maturity amount will be Rs 1784146.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
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