Post Office RD: Are you thinking of saving a small amount every month, then the Post Office Recurring Deposit (RD) scheme can be the best option for you.
In this scheme, you deposit a fixed amount every month and can raise a good amount after a few years. Let’s know about this great scheme in detail.
Post Office RD: Safe and Beneficial
The RD scheme of the post office is one of the safest investment options. Being backed by the government, the risk of money in it is shallow. Apart from this, the interest received on this scheme is also good compared to other investment options.
Increased RD interest rates
The government has recently increased the interest rates of small savings schemes. This also includes the post office’s RD scheme.
Now you will get 6.70% annual interest on a 5-year RD, which is 20 basis points more than before.
How much money will you get on maturity
Suppose you start an RD of Rs 3000 every month. So in one year you will deposit Rs 36,000 and in 5 years a total of Rs 1,80,000. According to the new interest rates, on maturity, you will get interest of about Rs 34,097. That is, in total, you will have Rs 2,14,097.
If you want to deposit a little more money, then you can deposit Rs 5000 every month. In 5 years you will have a total of Rs 3 lakh deposited and on this amount, you will get interest of about Rs 56,830. That is, on maturity, you will have a total of Rs 5,56,830.
A loan facility is also available
There is another benefit in the RD scheme of the post office – a loan facility. If needed, you can take a loan based on this deposit.
But remember, you can get a loan only if your RD is at least 3 years old. The interest rate of the loan will be 2% higher than the interest rate of RD.
Benefits of the Post Office RD Scheme
Safe investment: The Post Office scheme is completely safe.
Regular savings: Develop the habit of depositing a small amount every month.
Good returns: Interest rates are good.
Loan facility: If needed, you can also take a loan on it.
So if you want to save money for a long period and also want to make a safe investment, then Post Office RD can be a great option for you.