Post Office RD: If you are the kind of person who always thinks that a big fund cannot be created by depositing a small amount, then you need to change your thinking. A small contribution to a good scheme can do it easily. Let us tell you, a risk-free scheme.
The Post Office in India offers a set of investment schemes to citizens. Be it a Fixed Deposit (FD), Recurring Deposit or other social security schemes, Post Office has always been a trusted place to start an investment. It offers an RD scheme that allows investors to collect a fund of 1 lac by depositing only 600 a month.
At present, the Post office provides 6.50 per cent interest on the RD. With the interest rate, if an RD of Rs 600 per month is started, then a fund of Rs 1 lakh will be prepared easily. The tenure for the RDs in the Post offers is 5 years.
How 600/ month will become 1 lacs
- Start an RD with Rs 600 per month deposit
- In 5 years, You will deposit 36,000
- With 6.5% interest, the amount becomes 42593
Now, if you extend the RD for another 5 years, then a fund of Rs 1.01 lakh can be ready. The money deposited from your side will be Rs 72,000. And will get Rs 29,388 as interest.
This way, a fund of Rs 1 lakh will be created easily by depositing a small amount every month.
Post Office RD
Any citizen can start an RD with the Post office by depositing a minimum of Rs 100. However, there is no limit on the maximum deposit. That is, you can choose as much amount as you can.
Interest changes every quarter
At present, 6.5 per cent interest is being given on the RD of the post office. But, the same is not fixed, the interest rates are reviewed every 3 months. But once the interest rate at which your RD starts, it will continue to be available till the completion of the RD. Interest on RD deposit is calculated on the balance at the end of every month.
Also Read: SFB provides highest interest rate on 5-year FDs; know how much
