Most common people in India must have used a piggy bank to save money in their childhood, and when the piggy bank got full, they would find a lot of money at once. Similarly, the post office helps in saving money. People use various schemes to invest money in the post office.
One such scheme is the Post Office RD (Recurring Deposit) Scheme, where you can become a millionaire by investing. By depositing a fixed amount every month, you can accumulate up to Rs 1 lakh. Let’s understand the complete calculation for this scheme.
Open an Account with Just Rs 100 (Post Office RD Scheme)
In this post office scheme, you can start an account with just Rs 100. The maturity period for the RD scheme is 5 years, which can be extended to 10 years. An account can also be opened in the name of a minor, but parents need to provide their details and required documents. If you are a salaried person, you don’t need a large amount to invest. You can deposit a fixed amount every month from your salary, and after 5 or 10 years, you will have a significant sum.
Get Over Rs 1 Lakh by Investing Rs 1,000 Per Month
If you invest Rs 1,000 every month in this scheme, you will deposit a total of Rs 60,000 in five years. At an interest rate of 6.7%, you will earn Rs 11,369 in interest, making your total fund Rs 71,369. If you extend the account for another five years, your total deposit in 10 years will be Rs 1,20,000. With an interest of Rs 50,857 at the same rate, your total fund will be Rs 1,70,857 after 10 years.
Open Multiple Accounts and Joint Accounts
This scheme allows you to open more than one account. You can even open an account in the name of children, and if they are 10 years or older, they can operate it themselves. Additionally, a joint account can be opened by up to three people.