If you want to make a big fund for the future by making small savings, then the Recurring Deposit (RD) scheme of the Post Office can be the best option for you. This is a safe investment scheme backed by the government, in which you can get good returns by depositing a fixed amount every month. In this article, we will give you complete information about the RD scheme, so that you can make a wise investment decision.
What is Post Office RD Scheme?
The RD scheme of the post office is a long-term savings scheme, specially designed for the middle and low income groups. This scheme is run by the government, due to which the investment in it is completely safe. Under this scheme, you have to deposit a fixed amount every month, and at the time of maturity you get interest along with the principal.
Calculation of interest rate and return
Currently, the Post Office RD scheme is getting an annual interest rate of 6.70%. This interest rate is compounded on a quarterly basis, giving investors more benefits.
How much return will you get in 5 years?
If you save ₹150 daily, then:
Monthly savings: ₹4,500
Annual savings: ₹54,000
Total investment in 5 years: ₹2,70,000
Maturity amount including interest: ₹3,21,147
Total interest benefit: ₹51,147
How to open a post office RD account?
If you want to open an RD account in the post office, follow this easy process:
Fill the form: Get the RD account opening form from the post office and fill in the required information.
Submit documents: Submit the form along with identity proof (Aadhaar, PAN), address proof and passport size photo.
Initial deposit: Pay your chosen monthly amount.
Activate account: After verification of the form and documents, your account will be activated.
Key features of RD scheme
Minimum investment: You can start from ₹10 per month.
Maximum investment: There is no limit on the maximum amount.
Tenure of the scheme: Minimum 5 years, which can be extended by another 5 years.
Account for children: Parents can also open an account in the name of children below 10 years of age.
Non-payment on time: Late fees will be charged, and the account may be closed if the installment is not paid continuously.
Benefits of Post Office RD
Government guarantee: Your investment is completely safe.
Flexibility: You can choose the monthly deposit amount as per your convenience.
Better returns: Higher interest rate is received as compared to savings account.
Compounding interest: More returns are received on investment in the long term.
(FAQs) Frequently Asked Questions
Q1. Is the Post Office RD scheme available for children?Yes, parents can open an account in the name of children below 10 years of age.
Q2. What is the minimum and maximum amount that can be deposited in the RD scheme?You can start from a minimum of ₹10 per month, while there is no maximum investment limit.
Q3. What happens if the installment is not deposited on time?If the installment is not deposited on time, a late fee will have to be paid. The account may also be closed if the installment is not paid repeatedly.
Conclusion
The Post Office RD scheme is a great option for small investors, which offers safe and stable returns. If you want to make small savings regularly and create a sure fund for the future, then this scheme can be beneficial for you.