Post office schemes are highly regarded for investment purposes, offering a range of options for individuals of all ages.
These schemes provide a guaranteed return with the assurance of government backing, ensuring your money grows securely without the risk of loss.
Starting from July 1, the interest rate for Post Office Recurring Deposit (RD) has been increased.
The scheme, which previously offered an interest rate of 6.2%, now provides an interest rate of 6.5%.
The RD scheme has a duration of 5 years and allows investments starting from as low as Rs 100.
Let’s explore the profits you can earn through the RD scheme based on the new interest rates.
We’ll calculate the returns for investments of Rs 2000, Rs 3000, Rs 4000, and Rs 5000.
Investment of Rs 2000 in RD
If you choose to invest Rs 2000 every month, your total investment for a year would be Rs 24,000.
Over 5 years, you would have invested a total of Rs 1,20,000. Considering the interest rate of 6.5%, your interest earnings would amount to Rs 21,983 over the 5-year period.
Thus, at maturity, you will receive a total of Rs 1,41,983.
Investment of Rs 3000 in RD
Alternatively, by depositing Rs 3000 in the post office RD each month, your yearly investment would amount to Rs 36,000.
Over 5 years, your total investment would reach Rs 1,80,000. With an interest rate of 6.5%, you can expect to earn Rs 32,972 as interest over the 5-year period.
Therefore, your total amount at maturity would be Rs 2,12,972.
Investment of Rs 4000 in RD
For those investing Rs 4000 monthly in Post Office RD, the yearly investment would be Rs 48,000.
Over 5 years, the total investment would sum up to Rs 2,40,000. The interest earnings on this amount would be Rs 43,968.
Hence, at maturity, your total return would be Rs 2,83,968, including the invested amount and interest.
Investment of Rs 5000 in RD
If you opt for a monthly investment of Rs 5000 in post office RD, your annual investment would amount to Rs 60,000.
In 5 years, your total investment would reach Rs 3,00,000. Upon completion of the 5-year period, you would earn Rs 54,954 as interest.
Therefore, at maturity, your total return, including the deposited amount and interest, would be Rs 3,54,954.
These calculations demonstrate the potential profits you can accumulate through Post Office RD based on the new interest rates.
It provides a reliable avenue for secure investments with guaranteed returns, making it an attractive option for individuals seeking stability and growth for their savings.