If you are looking for a secure way to invest your money with guaranteed returns, Post Office savings schemes are an excellent choice. Also known as small savings schemes, these are backed by the Government of India, which sets interest rates every three months. Because of this government backing, these schemes provide assured returns, making them suitable for conservative investors. Even if you do not have a large sum to invest at once, you can invest small amounts each month through a Post Office Recurring Deposit (RD).
Key Features of Post Office RD
Any adult Indian citizen is eligible to open an RD account at the post office. You can open an account individually, or up to three adults can open a joint account together. Guardians can also open an account in the name of a minor, and minors over the age of ten can open accounts on their own. The minimum deposit required to start a Post Office RD is ₹100, and there is no upper limit on investment. The scheme currently offers an interest rate of 6.7 percent and has a maturity period of five years, which can be extended by an additional five years if desired. After completing one year or making twelve monthly deposits, account holders can also take a loan of up to fifty percent of their account balance.
Create a Fund of Over Rs 42 Lakh in Ten Years
By investing a portion of your monthly salary in a Post Office RD, you can build a significant corpus over time. For example, if your monthly salary is ₹1 lakh, you can invest ₹25,000 each month in an RD. After the initial five-year period, you can extend the scheme for another five years, continuing your regular investments. Following this plan consistently for ten years can help you accumulate a corpus of over ₹42 lakh. In this example, your total investment would be ₹30 lakh, while the interest earned would amount to approximately ₹12.71 lakh.
Joint Investment for Couples
Both husband and wife can also invest together in a joint RD account. This allows each person to contribute half the investment amount, reducing individual financial burden. For instance, if both partners invest ₹12,500 each every month in a joint account, they can still achieve a corpus of over ₹42 lakh in ten years.
Disclaimer
The interest rates and returns mentioned are based on the current Post Office RD scheme and are subject to change as per government policies. The actual maturity amount may vary depending on interest rate revisions and other factors. Readers are advised to confirm the latest details with their local post office before making any investment.
