Post Office RD scheme: At present, 5.8% interest is being given on Post Office RD scheme. This new rate of interest is applicable from April 1, 2020. The government fixes the interest rate of all small savings schemes every quarter.
If you want a bumper and guaranteed return on maturity along with a safe investment, then post office savings scheme can be a good option. This scheme runs under the supervision of the government, so there is no risk of losing money. In terms of returns, the Post Office Recurring Deposit Scheme (RD scheme) is much better.
Large maturity can also be found by depositing some money in the RD account of the post office. Money has to be deposited in installment in this account, but full care has to be taken that the installment is deposited continuously. The great feature of RD account is that it can be started with a deposit of just Rs 100. There is no maximum limit for depositing money in this account. You can deposit as much as you want. According to the amount you deposit, you will get the return.
The post office RD account is opened for 5 years. If the same RD scheme is started in the bank, then it can be run for 6 months, 1 year, 2 years and 3 years. On RD account, we calculate the interest quarterly and it is fixed on an annual basis. The amount of interest received on the deposit is deposited in the depositor’s account every quarter.
What is the interest rate
At present, an interest of 5.8% is being given on the post office RD scheme. This new rate of interest is applicable from April 1, 2020. The government fixes the interest rate of all small savings schemes every quarter.
16 lakh on maturity
The post office also runs a fixed deposit scheme (fd scheme). Compared to that, the RD scheme is much better. Post office FDs are for 1,2,3 and 5 years and a minimum deposit of Rs 1,000 has to be made. At the same time, the RD scheme of the post office can also be started from Rs. Interest on post office FDs ranges from 5.5 to 6.7 percent while post office FDs of 5 years have a lump sum interest of 5.8%. In post office FD, interest money is added throughout the year, whereas in RD scheme money gets added quarterly.
5 year account can be operated for 10 years
Deposit 10 thousand rupees every month in the RD scheme of the post office and if the scheme is extended for the next 5 years, then this amount will become 10 lakh rupees on maturity. The post office RD scheme is for 5 years only, but in some circumstances it can be extended up to 10 years. Here 5 years means that the account has to be operated continuously and there should not be any problem or the account should not be inactive. Under the special provision, a 5-year RD account can be run for 10 years and during this time the same interest facilities will be available which are available for 5 years.
It is to be kept in mind that in the RD account, it continues to run continuously. In the period in which the money is to be deposited, the amount should be deposited in the same period. If your account is closed without credit, then you will have to pay a penalty to get it started. The amount of fine will have to be paid at the rate of 1% every month. If you do not deposit the money of 4 consecutive installments then the account will be closed.
