If you are looking for completely safe investment planning, that is, you do not want any kind of risk on your investment, then the Post Office can prove to be a better option for you. You also get better investment and return in post office schemes. Post office small savings scheme is better. Earning money is earned by investing in it at a low cost. The name of one such post office scheme is – Post Office Recurring Deposit.
What is Post Office RD Scheme?
Overall, through this scheme, you can start investing with very little money. Apart from this, your money will also be completely safe. In this, you can invest from Rs 100 per month. There is no maximum limit on how much you can invest. Post Office RD Deposit Account is a government-guaranteed scheme of depositing small installments with a better interest rate.
Know how much interest you will get?
The RD account that is opened in the post office is for 5 years. Doesn’t open for less than that. Interest is calculated on the deposited money every quarter (at an annual rate). Then it is added to your account with compound interest at the end of every quarter. According to the India Post Office website, 5.8 percent interest is currently being given on the RD scheme. The central government announces the interest rate every quarter in all its small savings schemes.
If you invest 10 thousand rupees, you will get more than 16 lakhs
If you invest 10 thousand rupees every month in the post office RD scheme, that too for 10 years, then he will get Rs 16,26,476 lakhs on maturity.
Some special things about the RD account
If you do not deposit the RD installment on time, then you will have to pay a fine. For delay in installment, you will have to pay a one percent penalty every month. Along with this, if you do not deposit 4 consecutive installments, then your account will be closed. However, when the account is closed, it can be re-activated for the next 2 months.