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Post Office Recurring Deposit (RD) scheme is a safe investment option in which a fixed amount has to be deposited every month for a fixed period of time. This is a great option for those who want to save regularly and get good returns in the future.
Main benefits of Post Office RD
There are many benefits of investing in post office RD. It is a risk-free investment which is run by the government and offers fixed interest on the deposited amount.
Interest rates in post office RD
At present the interest rates on post office RD are decided as per government rules. These rates change from time to time and are based on the financial policies of the government.
How is the interest rate determined?
The interest rate on Post Office RD is decided on the basis of government bonds and other financial investments, making it a safe option.
How to get returns on just 5 years of RD?
If you invest regularly for 5 years, there is a possibility of getting huge returns on Post Office RD.
Calculating Returns Example
If you invest a fixed amount every month, you can get a return of Rs 14,27,315 at the end of 5 years. This calculation depends on the interest rate and time period.
Other benefits of Post Office RD
Investing in post office RD also provides many other benefits like tax benefits and loan facilities.
tax benefit
Investing in Post Office RD offers tax deductions which makes it even more attractive for investors.
loan facility
You can also take a loan against your RD account, which can be helpful in your financial needs.
Who can invest in Post Office RD?
Every Indian citizen is eligible to invest in Post Office RD, irrespective of age. There are some terms and conditions that have to be followed to invest in it.
How to open RD account in post office?
Opening a post office RD account is quite easy. It requires certain documents like identity and residence proof.
Required Documents
Identity proof like Aadhar Card, PAN Card, Passport etc. are required to open RD account.
Online and Offline Process
To open a post office RD account, you can apply online or offline by going to the post office.
What are the risks of investing in Post Office RD?
Although it is a safe investment, there is a possibility of change in interest rates in future, which may affect the returns.
Difference between post office RD and bank RD
The interest rates and security in post office RD are more stable as compared to bank RD.