If you also want to save for the future, but investing a large amount at once is beyond your budget, then a great scheme from the post office can be useful for you. Post Office Recurring Deposit (RD) is becoming very popular among the middle class and working people due to its security and better returns. The biggest feature of this scheme is that in this you have to deposit a little money every month like a piggy bank, which becomes a huge amount in your hands after 5 years.
What is the RD scheme of post office?
Post Office RD is such a savings scheme in which the investor has to deposit a fixed amount every month. This is great for people who want to get into the habit of regular savings. At present the government is giving 6.7% annual interest on this scheme. The special thing is that the interest is calculated on the basis of quarterly compounding, which further increases your earnings.
You can start with just ₹100
Investing in this scheme is very easy. You can open your account with just Rs 100 per month. There is no limit on the maximum deposit amount, that is, you can invest any amount every month as per your convenience. This flexibility makes it the first choice for housewives and small businessmen.
How much will be the profit on investment of ₹ 5000 per month?
If you invest Rs 5000 every month in this scheme, then the math for 5 years (60 months) will be like this:
- Your total deposit: ₹3,00,000 (Rs 3 lakh)
- Total interest received: Approximately ₹56,830
- Total amount on maturity: ₹3,56,830
In just 5 years, you will get a net profit of around Rs 57 thousand on your original amount, which is completely safe.
Security and guarantee assurance
Since this scheme is supported by the Government of India, investing in it is considered much safer than banks or the stock market. Market fluctuations have no effect on it. This scheme can prove to be a reliable financial partner for children’s education, marriage or any important household work.