Everyone likes to save. Many individuals lean towards Systematic Investment Plans (SIPs), but there are also those who wish to steer clear of market risks. For such individuals, a post office scheme might be a more suitable choice. This option not only offers guaranteed returns but also ensures the safety of their savings. If you’re in search of a reliable scheme, consider investing in the Post Office Recurring Deposit (RD) scheme. You don’t need to make a large upfront investment; instead, you can achieve good returns by contributing a fixed amount each month.
Investment Duration:
The Post Office RD scheme has a tenure of five years, providing an interest rate of 6.7%, calculated quarterly. If you invest Rs 7,000 monthly, you could accumulate around Rs 5 lakh in five years and approximately Rs 12 lakh in ten years.
Profit Calculation:
To understand the potential profit, let’s break it down. By investing Rs 7,000 monthly, your total contribution over five years would amount to Rs 4,20,000. With the 6.7% interest applied, you would earn Rs 79,564 in interest, leading to a maturity amount of Rs 4,99,564, which is roughly Rs 5 lakh.
Furthermore, if you choose to extend this RD for another five years, your total investment over ten years would reach Rs 8,40,000. With the same interest rate, you would earn an additional Rs 3,55,982, resulting in a total of about Rs 11,95,982 upon maturity.
Advantages of Post Office RD:
You can open a Post Office RD account with just Rs 100, and there’s no upper limit on the investment amount. Additionally, investors benefit from compound interest. It’s also possible for an individual to open multiple accounts under this scheme, and you can choose to set up either a single or joint account. While the RD account is designed for five years, it does allow for early closure under certain conditions.
