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Safe Investment: Make a fund of lakhs in 5 years with this post office scheme, understand the complete calculation

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Even today, most people in the country prefer safe investments rather than high returns. In such a situation, the plans of the post office first come to mind. For secure and better returns post office seems to be the best option.




New Delhi . Even today, most people in the country prefer safe investments rather than high returns. In such a situation, the plans of the post office first come to mind. For secure and better returns post office seems to be the best option. In the current times of Coronavirus pandemic, the importance of every small savings has become more relevant.

Especially for such investors who are able to save a maximum of two thousand or five thousand in a month. It is most important for them that they should invest money in such a place where there is a guaranteed return in a given time and the money is also 100% safe.

Post Office Recurring Deposit (RD)

Post Office ie Post Office Recurring Deposit (RD) is one such option, where you will get fixed interest on your deposit, as well as the money will be completely safe. Because, there is a sovereign guarantee of the Government of India on post office deposits, while deposits in banks are protected up to a maximum of 5 lakhs. In this way, by investing small savings every month, you can create a corpus of lakhs.

Post Office Recurring Deposit is one such scheme, which encourages small savings. Although its maturity is of 5 years, but you can extend it further for 5-5 years by applying. A minimum of Rs 100 has to be deposited every month in the RD of the post office. The deposit should be in multiples of Rs.10. There is no maximum investment limit in this.

5000 to be made in 5 years 3.48 lakhs

Suppose, if an investor invests 5000 rupees in RD of post office every month for 5 years, then he will get Rs 3.48 lakhs on maturity. In fact, the RD of the post office is currently getting 5.8 percent annual interest. The interest is compounded on quarterly basis.

Post Office RD Scheme

  • Post Office RD has the facility of both single account and joint account.
  • There can be a maximum of 3 adult names in a joint account.
  • In the name of the child above 10 years of age, the guardian can also open the account under his supervision.
  • The maturity of RD is 5 years, but by applying before maturity, it can be extended for the next 5-5 years.
  • You can deposit a minimum amount of Rs 100 per month in an RD account and a maximum amount in multiples of 10.
  • Nomination facility is also available at the time of account opening.
  • There will be facility of pre-mature closure after 3 years from the date of account opening. Interest rates change on a quarterly basis.
  • Account can be transferred from one post office to another.
  • Penalty has to be paid for not depositing it on time. It will be Re 1 for every Rs 100.
  • There is also a facility to take a one-time loan up to 50% of the deposited amount after one year. Which can be repaid in lump sum with interest.
  • There is also a facility to make online deposits through IPPB savings account.

Why is a post office safer than a bank?

Post office savings schemes are safer for small savings investors. This is because if the postal department fails to return the amount, then there is a sovereign guarantee on the deposited money of the post office. That is, if under any circumstances the postal department fails to return the money to the investors, then here the government goes ahead and takes a guarantee of the investors’ money. In any situation, your money does not get stuck. The government uses the money deposited in the post office scheme for its works. For this reason, the government also gives a guarantee on this money.




On the other hand, your entire deposit in the bank is not 100% safe. In case a bank defaults, the DICGC i.e. Deposit Insurance and Credit Guarantee Corporation guarantees the security of only Rs 5 lakh to the customers in the bank. This rule is applicable to all the branches of the bank. It includes both principal and interest. That is, if adding both is more than 5 lakhs, then only 5 lakhs is considered safe.

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