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Post Office RD Scheme: Everyone wants to save some part of their income and invest it in a place where their money is safe and they get good returns. In such a situation, the savings schemes run by the post office are becoming very popular among the people. There is one such scheme, in which you can deposit a fund of more than Rs 17 lakh by depositing just Rs 333 daily. We are talking about Post Office Recurring Deposit Scheme or Post Office RD Scheme, which is considered to be a piggy bank that gives huge returns to investors.
Excellent option for risk-free investment
All other post office savings schemes are risk free and there is no risk at all in RD investment. In this, the government itself guarantees security on investment. But in this small saving RD scheme which has a lot of benefits, you have to remember to invest at the right time every month, because if you forget to invest the installment in any month then you will have to pay a penalty of 1% every month and if you forget to invest 4 installments continuously. If you miss this account, it gets automatically closed. The maturity period of this scheme is 5 years.
Open account with just Rs 100
You can open your account by investing Rs 100 per month in this Recurring Deposit (RD) account, which is included in the best small savings schemes of Post Office. In this, the facility to open single or joint account is also provided. If we talk about interest, this scheme is currently offering a strong compound interest of 6.8 percent. That means, along with the investors’ money being safe, investors are also getting amazing interest rates in this government scheme.
Mathematics of raising Rs 17 lakh from Rs 333
If we talk about raising funds of more than Rs 17 lakh by investing in this popular scheme of the post office, then its calculation is very easy. If you invest Rs 333 daily in this scheme, then this amount comes to around Rs 10,000 per month. Meaning, by doing this you will save Rs 1.20 lakh every year. That is, in the maturity period of five years, you will deposit Rs 5,99,400, now if we look at compound interest at the rate of 6.8 percent, it will become Rs 1,15,427, i.e. your total amount will become Rs 7,14,827.
Now if you extend your investment in Post Office Recurring Deposit for 5 years after completion of the maturity period, that means you can avail the benefit of this piggy bank for 10 years. Now the amount deposited by you in 10 years will be Rs 12,00000 and the interest received on it will be Rs 5,08,546. Now after adding interest after 10 years, you will get a total amount of Rs 17,08,546.