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Everyone wants to invest their savings in a place that keeps them safe and provides good returns. Saving and investing are crucial for individuals, as a large fund is needed for their children's education, marriage, and other future needs. In such a situation, the Post Office Recurring Deposit (RD) scheme offers a great option. This scheme is not only safe but also helps build a substantial corpus through regular savings. Let's learn the full details about this scheme…

What is the Post Office RD Scheme?
The Post Office Recurring Deposit (RD) is a government savings scheme that requires a fixed monthly deposit. The best part about this scheme is that it doesn't involve any market risk. This scheme offers an annual interest rate of 6.7%, which increases with compounding. This means that you earn interest on the interest, allowing your corpus to grow rapidly.

How to Build a Fund of ₹17 Lakh?

Suppose you invest ₹10,000 every month in this RD. If you invest for 5 years, you will accumulate a total of ₹6 lakh, and with interest, you will earn approximately ₹7,13,659, a profit of ₹1.13 lakh. If you invest for 10 years, your total investment will be ₹12 lakh, but due to compound interest, your amount could grow to ₹17,08,546, resulting in an additional profit of approximately ₹5 lakh. This scheme is especially good for those who want to build a fund gradually and are risk-averse.

How to open an account, and what are the rules?
Opening an RD account is very easy. You can start with just ₹100. There is no maximum deposit limit, meaning you can invest as much as you want according to your capacity. A child aged 10 years or older can also open this account jointly with their parents. When the child turns 18, they will need to complete a new KYC form.

The total term of this scheme is 5 years. Depending on your needs, you can extend the account for another 5 years. There is also an option to close the account after 3 years. If the account holder dies during the term, the nominee can withdraw the funds or continue the account.

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