If you want to save Rs 5,000 every month but are unsure where to invest, there’s no need to worry. You can easily build a fund worth lakhs by investing this amount in the post office. Starting from the 1st, the interest rate on Post Office Recurring Deposits (RD) has increased. The government has also raised the interest rates for Small Savings Schemes. Here’s how much benefit you can receive by investing Rs 5,000 every month in a Post Office RD.

Start with Just Rs 100

You can begin investing in the Post Office RD (Recurring Deposit) scheme with as little as Rs 100. Moreover, there is no maximum limit for investment in RD. You can increase the contribution in multiples of Rs 10.

Earn Rs 56,830 in 5 Years

For instance, if you invest Rs 5,000 every month in the Post Office RD, you will receive approximately Rs 3,56,830 upon maturity after 5 years. In this case, your total investment will be Rs 3,00,000, and you will earn Rs 56,830 as interest from the government.

Earn Rs 2.5 Lakh in Interest Over 10 Years

If you extend your Post Office RD for an additional 5 years, continuing to invest Rs 5,000 monthly for 10 years, you can earn a maturity amount of Rs 8,54,272. Out of this, the interest income will be Rs 2,54,272.

Recent Increase in Interest Rates

The Finance Ministry has recently announced an increase in interest rates for Post Office RD. The interest rate on 5-year RD has gone up from 6.5% to 6.7% for the period from October 1, 2023, to December 31, 2023. Additionally, the benefit of compound interest makes these government schemes highly attractive for investment.

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