Post Office Scheme: Post Office not only sends letters but it also gives you many options to invest. One of these is a special scheme in which you can create a fund of Rs 11 lakh by investing just Rs 222. For this, you just need to know a small calculation.
Add informalnewz.com as a Preferred Source
Post Office Scheme: You must have heard about the different schemes of the post office many times. One of the special schemes among these is Recurring Deposit i.e. RD, in which you can create a fund of Rs 11 lakh by saving just Rs 222 daily. This scheme comes with the guarantee of the government, that is, your money is completely safe.
In the post office RD scheme, you deposit a fixed amount every month. If you save Rs 222 every day, it becomes Rs 6,660 in a month. According to this, in 5 years you will deposit a total of Rs 3,99,600. On this amount, you get 6.7% annual interest, which is compounded every three months. That means you get interest on your interest as well.
In this case, after 5 years you get Rs 4,75,297. Now if you extend this investment for another 5 years i.e. for a total of 10 years, then your investment will become Rs 7,99,200 and the total amount will increase to Rs 11,37,891. In this way, after 10 years, you will get Rs 11 lakh. Such a big fund can be created by just saving a small amount of Rs 222 every day!
The best thing about this scheme is that you do not need a large amount to start it. You can start with just Rs 100 per month. This scheme is open to people of all ages, whether you are young, old or opening an account for a child.
You can open an account alone or jointly. If you need money in between, there is also an option to close the account after 3 years.
Also, if you have deposited continuously for 1 year, you can also take a loan of up to 50% of your deposit amount. Only 2% additional interest has to be paid on this loan, which can be a big support in your time of need.
There is also a nominee facility in this scheme. If something happens to the investor, the nominee can claim the account or carry it forward. The duration of the scheme is 5 years, but you can extend it by 5 more years.
Keep in mind that you have to deposit the amount on time every month, otherwise a penalty of 1% per month may be levied. If 4 consecutive installments are missed, the account may also be closed. This scheme is an easy and safe way to convert small savings into a big fund.
