The Post Office Small Saving Scheme is a hidden gem for those seeking financial stability and flexibility.
Apart from promising returns, several post office schemes provide the added advantage of availing loans.
Among these, the Post Office Recurring Deposit (RD) stands out, offering a unique opportunity for individuals to grow their savings while enjoying the perks of a loan facility.
Securing Loans with Post Office RD
Customers can now tap into the potential of their post office RD accounts to secure loans. To be eligible, individuals must have completed a minimum of 12 installments or one year of RD deposits.
Post Office allows a loan amount of up to 50 percent of the account balance, repayable either in lump sum or installments.
However, borrowers should note that the interest on the loan is 2 percent higher than the RD interest rate, ensuring a fair return for the post office.
Simplified Loan Acquisition Process
Wondering how to make the most of this opportunity? Acquiring a loan against your RD is a straightforward process.
Simply visit your nearest post office, complete the loan application form, and submit it along with your passbook.
Once the necessary formalities are fulfilled, you can access the funds to meet your financial needs.
Crunching the Numbers: Post Office RD Returns
Investing in an RD of Rs 5,000 monthly accumulates to Rs 3,00,000 over five years, yielding a significant interest of Rs 56,830 at a rate of 6.7 percent.
For a more modest investment of Rs 3,000 monthly, the total amount after five years is Rs 2,14,097, showcasing the impressive returns offered by the post office RD.
Current Interest Rates on Various Post Office Schemes
Annual RD (Post Office RD): 6.7 percent (previously 6.5 percent)
National Savings Certificate (NSC): 7.7 percent
Kisan Vikas Patra (KVP): 7.5 percent (mature in 115 months)
PPF – 7.1 percent
Sukanya Samridhi Account (Sukanya Samridhi Yojana): 8.2 percent
Senior Citizen Saving Scheme: 8.2 percent
Monthly Income Scheme (Post Office Monthly Scheme): 7.4 percent
Seize the opportunity to grow your savings and access financial support when needed through the Post Office Small Saving Scheme.
