Regular investment can bring big returns in the long run, as investment experts say. Currently, there are many investment options available in the market, but most of them come with some level of risk. However, government schemes, bonds, and bank deposit schemes offer guaranteed returns, making them completely risk-free.

When it comes to bank deposit schemes, the first option that comes to mind is fixed deposits. This is a reliable choice, as banks are currently offering good interest rates on fixed deposits. For senior citizens, the interest rates on fixed deposits are even higher than those for regular customers. If someone wants, they can also open a fixed deposit in the name of an elderly family member to benefit from these higher rates. In this article, we will introduce a special post office scheme where you can invest just ₹500-₹1000 and get high returns.

Fixed Deposits vs. Recurring Deposits – Which is Better?

Fixed deposits cannot always keep up with inflation. So, if someone wants to build a large fund by investing a small amount regularly without any risk, a Recurring Deposit (RD) is a great option. Many banks offer RD with different interest rates, but the Post Office Recurring Deposit Scheme stands out as an ideal choice.

Post Office Recurring Deposit – Interest Rate & Tenure

The central government currently offers 6.7% interest on Post Office RD. The maturity period is 5 years, but you can withdraw the money after 3 years if needed. One of the biggest benefits of RD is zero risk—your money remains completely safe. That’s why it is a preferred option for small investors.

Loan Facility on RD

RD also allows investors to take loans against their deposits. As per Post Office rules, you can take a loan of up to 50% of your deposited amount after paying 12 installments. The loan can be repaid in a one-time payment or installments. The interest on the loan will be 2% higher than the RD interest rate.

How Much Return Can You Get?

By investing just ₹500 to ₹1000 per month, you can get high returns under this scheme. Let’s look at the calculations:

  • ₹500/month → ₹34,000 after 5 years
  • ₹600/month → ₹40,800 after 5 years
  • ₹700/month → ₹47,600 after 5 years
  • ₹900/month → ₹61,200 after 5 years
  • ₹1000/month → ₹68,000 after 5 years