Post Office RD : If you save a small amount of money every month and want to invest it in a safe place where you get good interest, then the Post Office RD scheme could be a great option for you. This scheme is especially for people who want to make small investments while keeping their savings secure. In this scheme, you get guaranteed returns, and there is no risk of losing your money. Additionally, in difficult times, you can also avail of a loan facility.
6.7% Interest Rate
Currently, the Post Office RD scheme offers an interest rate of 6.7%. This interest is compounded quarterly, meaning the interest also earns interest on your principal, which helps your amount grow faster over time.
Start with ₹100 Monthly Contribution
To open an RD account, you need to deposit a minimum of ₹100 every month, and you can increase the amount in multiples of ₹10. This means you can deposit anywhere from ₹100 to ₹10,000 or more each month. There is no upper limit on how much you can invest, so you can choose to invest as much as you want.
Who Can Open an Account?
Any adult can open an RD account in their name. Additionally, a joint account can be opened, with up to three people. Children over the age of 10 can also open an account in their name, and one person can open multiple accounts.
Returns on ₹2,400 Monthly Deposit
Let’s say you deposit ₹2,400 every month. If you continue this for 60 months (5 years), your total investment will be ₹1,44,000. The 6.7% interest rate applied to this amount will grow your investment through compound interest. This means that the interest earned also starts earning interest, which increases your returns.
At the end of the 5 years, when the full amount matures, you will get ₹1,71,276. This includes your ₹1,44,000 investment and ₹27,276 as interest. Thus, the Post Office RD scheme is a safe and profitable way to invest your money, offering a steady and assured growth.
Penalty for Default | Post Office RD
If you fail to deposit your monthly installment on time, you will be charged a penalty of ₹1 for every ₹100 installment. If you miss four consecutive installments, your account may be closed, but it can be reopened within two months. Additionally, if you pay 6 or 12 months’ installments in advance, you get discounts of ₹10 and ₹40, respectively.
Loan Facility
If your account is 1 year old and you have paid 12 installments, you can avail of a loan up to 50% of your deposited amount. The interest rate on the loan will be 2% higher than the RD interest rate. However, if your account completes 3 years, you can close it. But if you close the account before maturity, you will only receive the savings account interest rate.
In conclusion, the Post Office RD scheme is an excellent way to invest your money securely while earning a decent interest rate. The ability to get a loan and the flexibility in monthly contributions make this scheme an attractive option for regular savers.
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