Post Office Saving Scheme: If you want to invest your money somewhere and don’t want to take any risk, then Post Office is the right option for you. In the Post Office saving scheme, your money is secure and so also your return. Here’s one investment in which the risk is negligible and the returns are also good and Post Office Recurring Deposit is one of them as an investment avenue.
Post Office Recurring Deposit: How to invest money
The Post Office Recurring Deposit Account is a government-guaranteed scheme of depositing small amounts in installments with better interest rate. In this scheme, you can start investing with a small amount of just Rs 100. Moreover, there is no maximum investment limit, you can invest as much money as you want.
It must be noted that the Post Office Recurring Deposit account can be opened for five years. However, banks offer the facility of recurring deposit accounts for six months, 1 year, 2 years, 3 years. Interest is calculated every quarter (at annual rate) on the deposited money and it is added (including compound interest) to your account at the end of every quarter.
Post Office Recurring Deposit: Know the interest rate
At present, the Post Office Recurring Deposit scheme offer interest of 5.8%. This new interest rate is applicable from April 1, 2020. The Central government has fixed the interest rates of all its small savings schemes every quarter.
Invest Rs 10000 every month, and you get return of Rs 16 lakh
If you invest Rs 10,000 every month in the post office RD scheme for 10 years, then after 10 years you will get more than Rs 16 lakh at the rate of 5.8%.
Post Office Recurring Deposit: Important things to remember
You will have to keep depositing money in the account regularly, if you do not deposit the money, then you will have to pay a penalty of one percent every month. Your account will be closed if 4 installments are missed consecutively.
