Looking for a secure investment option to grow your savings? Look no further than the Post Office’s Recurring Deposit Scheme. With an investment of just ₹10,000 per month, you can secure hefty returns in just 5 years. Here’s everything you need to know about this superhit scheme.
Government Boosts Returns
The Ministry of Finance has recently revised the interest rates for small savings schemes, making the 5-year recurring deposit scheme even more appealing. With a significant increase of 30 basis points, the interest rate now stands at an impressive 6.5 percent, up from 6.2 percent. This move aims to attract more investors to this medium-term investment option.
How It Works
The Post Office’s Recurring Deposit Scheme offers investors an annual interest of 6.5 percent, compounded quarterly. Investors can start with a minimum deposit of just ₹100, with subsequent deposits in multiples of ₹100. Unlike banks, the tenure of these recurring deposits is fixed at 5 years, with the option to extend for another 5 years at the prevailing interest rates.
High Returns Guaranteed
Curious about the potential returns? Let’s do the math. Using the Post Office RD Calculator, depositing ₹10,000 every month for 5 years would yield a staggering ₹7.10 lakh. With a total capital of ₹6 lakh and an interest share of approximately ₹1.10 lakh, it’s a lucrative opportunity to grow your wealth steadily.
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Deposit Deadlines Matter
Timing is crucial when opening a Recurring Deposit account with the Post Office. If you initiate the account between the 1st and 15th of the month, subsequent deposits must be made by the 15th of each month. However, if the account is opened after the 15th, deposits must be made by the last day of the month. Remember, every day counts when it comes to maximizing your returns.
Loan Facility and Early Closure
Need liquidity? After 12 installments, investors can avail of a loan facility at an interest rate 2 percent higher than the RD account’s interest rate. However, closing the account prematurely, even a day before the completion of 5 years, will only yield the interest rate of a savings account, currently set at 4 percent.
Conclusion
In conclusion, the Post Office’s Recurring Deposit Scheme offers a compelling avenue for investors looking to grow their savings securely. With attractive interest rates, flexible deposit options, and the potential for high returns, it’s a superhit scheme that shouldn’t be overlooked. Take advantage of this opportunity to unlock your wealth and secure your financial future.
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