In today’s time everyone wants their savings to be safe and become a big fund in the future. Government schemes give confidence to people when there is a risk of volatility in the stock market or other investment options. For this reason, Post Office Small Savings Schemes are very popular among the general public. One of these is the Post Office Recurring Deposit Scheme, which helps build large funds from small investments.
What is Post Office RD Scheme?
Post Office Recurring Deposit i.e. RD Scheme is for people who want to save a solid amount for the future by depositing a small amount every month. This is a fully government backed scheme, hence the investment risk is negligible. In this scheme, you can open an account with just Rs 100 and there is no maximum investment limit, that is, you can increase the amount according to your income.
How will the net of 25 lakhs be prepared?
Now let’s talk about the question in everyone’s mind that how will such a big fund be made? If you deposit Rs 15,000 per month in Post Office RD, your deposit will be around Rs 10.7 lakh in 5 years. In this scheme you get 6.70% interest.
If you continue this plan for 10 consecutive years, the picture will change completely. In 10 years, the interest income can reach up to 7.5 lakh rupees. Including your total deposit and interest, the fund received on maturity is approximately Rs. 25.6 lakhs. That means regular savings every month can reach you to a huge amount.
Safe investment and good interest
The biggest feature of Post Office RD scheme is its security. The money deposited in it is completely safe and guaranteed by the government. Along with this, the interest earned on this scheme is also considered attractive. This is the reason why working people, small business people and people planning for retirement prefer this plan.
Loan facility will be available
In this scheme not only investment but also facility of taking loan if required. If you have operated your RD account for at least one year, you can take a loan of up to 50 percent of your deposit amount. The special thing is that the interest rate on this loan is also very low, due to which you can fulfill your needs without much burden.
Easy to open and close account
Opening a Post Office RD account is very easy. You can open an account by going to your nearest post office. If for some reason you have to withdraw money before the scheduled time, the account closure facility is also available. Hence this scheme offers both flexibility and security.