Post Office RD: You can easily create a big fund by investing in Post Office Recurring Deposit (RD). You keep putting a fixed amount in it every month and after 5 years when it matures, you will have a big amount in your hand.
Post Office RD scheme: Not only this, if you need money in between, you can also take a loan on it without breaking the RD. In this, loan is available at a lower interest rate than a personal loan. Here we are telling you about the terms and conditions of taking a loan on Post Office RD.
First understand what is RD?
Post Office Recurring Deposit or RD can help you in big savings. You can use it like a piggy bank. Meaning, you keep putting a fixed amount in it every month when you get your salary and after 5 years when it matures, you will have a big amount in your hand. Even though you may not get interest on depositing money in the piggy bank at home, but you also get a hefty interest on depositing money here.
Special things related to Post Office RD
- India Post RD is getting 6.7% interest.
- You can invest a minimum of Rs 100 every month in this.
- Above this, you can deposit any amount in multiples of 10.
- There is no limit on the maximum deposit amount.
Loan facility is available after 1 year of starting RD
If you deposit 12 installments continuously in the five-year recurring deposit scheme of the post office, then you can avail the loan facility. That is, to avail this facility, you have to deposit the amount continuously for at least one year. After one year, you can take a loan of up to 50% of the amount deposited in your account.
You can pay the loan amount in lump sum or in equal monthly installments. On the other hand, if you are unable to repay the loan, then the loan and interest amount will be deducted when the RD account matures. After this, the amount that remains will be deposited in your account.
How much interest is to be paid?
If you take a loan on RD, then the interest on the loan amount will be applicable to you as 2% + interest rate applicable on the RD account. For example, currently 6.7% interest is being given on RD, in such a situation, if you take interest on RD now, then you will get a loan at an interest rate of 8.7% per annum. On the other hand, if you take a personal loan, then you may have to pay interest ranging from 10.50% to 24%.
How to get a loan?
To avail the loan facility on RD, you have to fill the application form along with the passbook and submit it to the post office. After this, the post office will put your loan in process.
You can easily create a big fund through RD
You can easily create a big fund through RD. By investing 1 thousand rupees every month in it, you will get about 71 thousand rupees after 5 years. On the other hand, if you invest 2 thousand rupees every month, then you will get about 1.42 lakh rupees after 5 years.
How much money will you get after 5 years if you invest every month
| Investing every month | How much did you deposit in total | How much interest will I get | How much money will you get in total |
| ₹1,000 | ₹60,000 | ₹11,369 | ₹71,369 |
| ₹2,000 | ₹1,20,000 | ₹22,732 | ₹1,42,732 |
| ₹5,000 | ₹3,00,000 | ₹56,830 | ₹3,56,830 |
Note: This calculation is approximate.
Any person can open an account
Any person can open an RD account. This account can also be opened in the name of small children. If you are 10 years or older, you can operate it yourself. 3 people can also open a joint account together. You can open an account in it through any post office.
