The RD (Recurring Deposit) scheme in banks and post offices is similar to a piggy bank. You can invest a fixed amount every month. While a piggy bank doesn’t offer any interest, you only save money. However, if you invest in an RD, you get your money back with interest upon maturity. This scheme is ideal for those who prefer to make small savings and do not want to take any kind of risk.

PM Ujjwala Yojna: Great news for women..! You will get free LPG gas connection, just have to do this work

If you’re considering investing in an RD, you can invest in the Post Office RD scheme. This investment is made for 5 years. If you save Rs 100 every day and invest in it, you will accumulate Rs 2,14,097 in 5 years. You can use this amount as per your needs.

How Rs 2,14,097 will be added:

By adding Rs 100 every day, you will save Rs 3,000 per month. In this way, you will invest Rs 3,000 every month in the post office RD scheme. Annually, this amounts to Rs 36,000, and over 5 years, you will invest a total of Rs 1,80,000. Currently, this scheme offers an interest rate of 6.7%. In 5 years, you will earn Rs 34,097 as interest, and on maturity, you will receive Rs 2,14,097. Thus, you can accumulate a good amount with small savings.

SVAMITVA Yojana is a government initiative launched by the Ministry of Panchayati Raj

According to the information available on the post office website, an RD account can be opened with just Rs 100, and there is no maximum limit on investment.

RD Can Also Be Extended:

If you want to continue benefiting from the RD scheme after 5 years, you can extend it for another 5 years. The same interest rate will apply during the extension, which was applicable when you opened the account. The extended account can be closed at any time during the extension period. In this case, the interest rate of the RD account will apply for full years, and interest will be given at the savings account rate for any period of less than one year. For example, if you close the extended account after 2 years and 6 months, you will receive interest at 6.7% for the first 2 years and 4% for the remaining 6 months, as per the post office savings account rate.

Mahindra XEV 4e: Amazing features with Great Range

Rules for Closing the Account Before Maturity:

If needed, you can close the post office RD account before 5 years. You can do this after three years from the date of opening the account. However, if you close the account even a day before the maturity date, the interest will be equal to the rate offered by the post office savings account, which is currently 4%.

Disclaimer:

The information provided in this article is for general knowledge only and should not be considered financial or legal advice. Rules may vary based on bank policies and government regulations. Please consult your bank or a legal expert for specific guidance. Times Bull is not responsible for any financial investments made, as it is entirely your responsibility. Please consult a financial advisor for better results.