In today’s competitive world, saving is equally important in our lives. If you also want to save Rs 5000 every month but are confused about where to invest the money, then you don’t need to worry anymore. You can easily build a fund of lakhs by investing this money in the post office. The interest on Post Office RD has increased from the 1st, as the government has raised the interest rates of Small Savings Schemes. Throughout this article, we will tell you how much benefit you will get if you invest Rs 5000 every month in a Post Office RD.
You can start with Rs 100
You can start investing in Post Office RD (PORD) with as little as Rs 100. There is no maximum limit on RD investments. You can increase your investment in multiples of Rs 10.
You will earn Rs 56,830 after 5 years
For example, if you invest Rs 5000 every month in the post office, you will receive around Rs 3,56,830 at maturity after 5 years. Your total investment will be Rs 3 lakh, and you will earn Rs 56,830 as interest from the government.
Earn Rs 2.5 lakh in interest after 10 years
If you continue your Post Office RD for an additional 5 years, investing Rs 5000 every month for 10 years, you will receive Rs 8,54,272 at maturity. The interest income in this case will be Rs 2,54,272.
Finance Ministry’s Recent Announcement
The Finance Ministry has recently issued a notification about an increase in interest rates. From October 1, 2023, to December 31, 2023, customers will now receive an interest rate of 6.7% on a 5-year FD, up from the previous rate of 6.5%. These government schemes benefit from compounding interest, helping your savings grow even faster.
How to Apply for Post Office RD: Quick Guide
- Visit a Nearby Post Office: Go to the nearest post office offering the Post Office RD scheme.
- Bring Required Documents: Carry your Aadhar card, address proof, PAN card (if applicable), and a passport-size photo.
- Fill out the Application Form: Complete the RD application form with your details and desired monthly investment amount (minimum Rs 100).
- Submit Documents & Payment: Submit the form along with the required documents and make your initial deposit (cash, cheque, or demand draft).
- Receive RD Passbook: After processing, you’ll receive an RD passbook, tracking your deposits and interest.
- Make Monthly Deposits: Deposit the agreed monthly amount, either at the post office or via online banking.
- Maturity: After the investment period (5 or 10 years), you can withdraw your maturity amount, including both principal and interest.