Post Office Recurring Deposit Scheme
Every person wants to invest their savings money in a place where money is safe and returns are also good. Savings and investment would be very important for a man because in future, big funds are required for the child's education, marriage and other needs. In such a situation, the recovery deposit (RD) scheme of the post office comes out as a great option. This scheme is not only safe, but also helps in creating large funds with regular savings. Let's know the entire details about this scheme…
What is the post office RD scheme?
The recovery deposit of the post office i.e. RD is a government savings scheme in which a fixed amount has to be deposited every month. The best thing about this scheme is that there is no market risk in it. In this scheme you get an interest rate of 6.7% annually, which increases with compounding. This means that interest is also available on interest here, due to which your amount increases rapidly.
How will the fund of 17 lakhs be made?
Suppose you invest Rs 10,000 every month in this RD. On investing for 5 years, you will deposit a total of 6 lakh rupees and with interest you will get about 7,13,659 rupees i.e. the benefit of Rs 1.13 lakh. If you invest for 10 years, then your total investment will be Rs 12 lakh, but your amount can increase to Rs 17,08,546 due to compound interest. That is, you will get an additional benefit of about 5 lakh rupees. This scheme is especially good for those who want to make funds slowly and do not want to take risk.
How to open, and what are the rules?
Opening RD account is very easy. You can start it with just 100 rupees. There is no maximum deposit limit in this, that is, you can invest as much as you want according to your capacity. A child of 10 years or older can also open this account with his parents. When the child turns 18, he will have to fill the new KYC and form.
The total duration of this scheme is 5 years, according to your need, you can extend this account for 5 years and for 5 years. There is also an option to close the account on completion of 3 years. If the account holder dies in the middle of the account, the nominee can withdraw money or continue the account further.
