Many people want to earn more money, and one way to do this is by investing in small savings schemes like the Post Office Recurring Deposit (RD) scheme.
It is a safe way to grow your money with no risk. The more money you invest, the higher the returns you can get.
For example, if you invest Rs 5,000 each month, you can accumulate up to Rs 8 lakh. If you invest Rs 10,000 each month, you can build a fund of up to Rs 16 lakh.
Key Features of the Post Office RD Scheme
The Post Office RD is supported by the Government of India, which ensures that your money is safe.
Unlike bank deposits, which are only insured up to Rs 5 lakh, there is no limit on how much you can invest in the Post Office RD.
Interest Rate: The scheme offers 6.7% interest, which is compounded quarterly.
Maturity Period: The maturity period is 5 years, and you can extend it for another 5 years.
Deposit Requirements: You need to deposit at least Rs 100 each month. There is no maximum limit for deposits, and you can open the RD in both single and joint accounts.
How to Grow Your Fund
If you deposit Rs 5,000 every month for 10 years, based on the current interest rate of 6.7%, you will have Rs 8,54,272 when the RD matures.
Important Rules and Penalties
Missed Payments: If you miss a payment, you will be charged a penalty of Rs 1 for every Rs 100, which is a 1% penalty.
Account Closure: If you miss four payments, your RD account will be closed.
Additional Benefits of the Post Office RD
Loan Facility: After one year, you can take a loan of up to 50% of the amount you’ve deposited. The loan must be repaid with interest.
Account Transfer: You can transfer your RD account from one post office to another.
Online Deposits: You can deposit your installments online using an IPPB savings account.
