Post Office Scheme: If you want to invest your savings in a risk-free and easy way, then the Post Office RD scheme can be a good option for you. In this, you deposit a fixed amount every month, which gradually accumulates into lakhs.
Mumbai: Do you want to invest your savings in a safe and easy way? Then the Post Office RD scheme could be the best option for you. In this, you deposit a fixed amount every month, which gradually builds a good fund. Its biggest feature is that there is no market risk and you get a predetermined interest rate. Over a period of 5 years, this scheme not only instills the habit of regular savings but also builds a strong financial foundation for the future. It is a reliable and guaranteed return scheme to create large capital from small investments.
The duration of this scheme is 5 years and during this period you get a fixed interest rate. Which is fixed at the beginning. If you want to start investing but do not want to take market risks, then this scheme is a great investment option for you. It can be started by visiting any nearby post office. This is an easy and reliable way to create funds for the future by making a habit of regular savings. With the help of this scheme, you get the amount back with interest after 5 years.
You can start investing in the Post Office RD (Recurring Deposit) scheme with just Rs 100 per month. It does not require a large amount, you can deposit more as per your convenience. This scheme is a good option for people from every income group, whether you are a working person, a housewife or a small businessman.
Any minor aged 10 years or above can open this account with the help of his parents or guardians. Once he turns 18, he will have to update his KYC and also submit a new form so that the account continues in his name. RD account is no longer as troublesome as it was earlier, you can easily open it through mobile banking or e-banking. This scheme not only instills the habit of saving but also gradually builds a good amount of money which will be useful for you in the future.
Opening an RD account in a post office is very easy, but there are some important rules attached to it that need to be remembered. When you open the account, the first installment has to be deposited at the same time. If you have opened the account before the 16th of the month, then you have to deposit the subsequent installments by the 15th of every month. But if the account is opened after the 16th, then you will get time to deposit the money from the 16th of every month till the last working day of the month.
This post office scheme has many advantages. It has no market risk, the interest rate is fixed and you get into the habit of investing a small amount every month. Along with this, after 12 months of opening the RD account, i.e. when you deposit 12 monthly installments, you are eligible for a loan. You can borrow up to 50% of your deposit. You can repay this loan in lump sum or in EMIs. If the loan is not repaid on time, then after the maturity of the account, the post office deducts the loan amount from your maturity amount and the remaining amount is given to you.
Let’s understand the returns from Post Office RD with a simple example. Suppose you deposit Rs 50,000 every month in RD and this continues for 5 years, then Rs 50,000 x 12 months x 5 years, will be a total of Rs 30 lakh. The interest rate in this is 6.7% per annum (this interest is applicable on a quarterly compounding basis).
In such a situation, after 5 years, you can get around Rs 35.85 lakh. This will include interest of around Rs 5.85 lakh, which you will get along with your deposit amount. That is, you can get this money without any risk just through investment.
