Post Office RD Scheme: Post Office RD Calculator 6.2 percent interest is being given on RD in the post office. Any investor can invest in RD from 5 years to 10 years.
Frequency Deposit or Recurring Deposit (RD) is a very popular option among safe investment options in India. The biggest advantage of the Recurring Deposit Scheme is that in this you do not have to deposit a lump sum amount like FD, but deposit small amounts every month. The interest on this is higher than savings account, but lower than FD. The tenure of RD can be from five years to ten years.
Interest rate on RD
Post office RD schemes come under small savings schemes. In the new interest rates announced by the Central Government for April to June 2023, the interest on RD has been increased from 5.8 percent to 6.2 percent. Apart from the post office, you can open RD account in any government and private bank.
There are two types of RD
There are two types of RD scheme. First Regular Recurring Deposit and second Flexi Recurring Deposit. In this, you have to deposit a fixed amount every month for a fixed period of time. For example, you deposit an amount of Rs 4000 every month for 10 years, then it will be called a regular recurring deposit.
Whereas, in Flexi Recurring Deposit, you can increase or decrease your monthly installment according to your need.
Formula to calculate interest in RD
M = R [(1+i)n – 1] divided by 1-(1+i)(-1/3)
In this M stands for the amount received during maturity. R stands for the total number of monthly installments paid. N stands for the tenure of the RD and I stands for the rate of interest.
How much profit on investing in RD
If you deposit 5000 rupees every month in the post office at an interest rate of 6.2 percent, then after 5 years you will get an amount of 3.52 lakhs and after 10 years it will increase to 8.32 lakhs.