Nowadays, everyone wants to invest their hard-earned money in a safe place, right? In this era of fraud, people are looking for investment options where the money does not sink and also grows. That is why, people are liking the post office schemes a lot these days. Why? Because it is government-run, which means security is guaranteed!
One of the many schemes of the post office is the Recurring Deposit (RD). This scheme is especially good for the middle class people. In this, you can deposit a little money every month according to your pocket, and when it matures, you get a good return. The best thing is that you can invest by saving just a little from your income, and the government also gives you an interest of 6.7% on it.
The Post Office RD scheme is a small savings scheme, which has been started by the government. Therefore, investing in it is considered completely safe. And what’s more, the return you get is also guaranteed by the government! Let’s know a little more about this scheme.
For how many years will you have to invest in Post Office RD?
If you are thinking of investing in Post Office Recurring Deposit Scheme, then let us tell you that you have to deposit money for 5 years. This is a lock-in period of 5 years.
By the way, if you need money in between, then you can close your RD account even after 3 years. But yes, if you do this, then you will get a little less interest and may also have to pay some penalty. For now, investing in this scheme is getting 6.7% annual interest.
What is the minimum investment you can make in RD account?
Nowadays, everyone is liking the Post Office Recurring Deposit Scheme, and the biggest reason for this is that you can start investing in it with as little as Rs 100! And the most amazing thing is that there is no limit to the maximum investment in it. Meaning, you can invest as much money as you want. A person can open as many RD accounts as he wants and invest as much as he wants every month.
Loan facility also in the scheme!
If you are investing money in Post Office Recurring Deposit Scheme, then you should also know what other benefits it has. So listen, the government also provides you loan facility in this scheme!
But, the post office has some terms and conditions for taking a loan. Like your RD account should be active for at least one year, and you should have invested in it every month for a year. If all this is fine, then you can get a loan of up to 50% of your deposit amount.
Post Office RD: Just deposit Rs 1500 every month for 5 years
Let’s understand with an example. Suppose, a person deposits Rs 1500 every month for 5 years in Post Office Recurring Deposit Scheme. So, his investment in one year will be Rs 18,000. And the total investment in 5 years will be Rs 90,000. At 6.7% interest rate, he will get Rs 17,050 as interest only in 5 years. And when the scheme matures, he will get a total return of Rs 1,07,050.