Post Office Recurring Deposit Scheme : Invest Rs 10,000 Each Month and Get Rs 16 Lakh Return at Maturity

Post Office Recurring Deposit Account: Investing in Post Office schemes is something that one treats as the most reliable and safest way to keep their money. Investing in Post Office schemes is often popular among most middle class Indian citizens, who do not want to risk their assets and invest in the stock market or cryptocurrencies. Several savings schemes offered by the India Post are some of the most popular risk-free savings schemes in the country. For the average middle class citizen in India, investing in good schemes with fixed and good rates of interest remains among the topmost priorities. The post office, which is backed by the government, aims to cater to those needs of the people.

While investing in Fixed Deposits or Savings Accounts at banks is one option, another great alternative investing your money through the Post Office Savings Scheme, or more specifically, the Post Office Recurring Deposit Account.Post Office Recurring Deposit

What is Post Office Recurring Deposit

Through this method, both your money and the interest you garner over time are safe and secure. It should also be noted that the potential risk is relatively negligible while still providing good returns. If someone is looking to invest in something that will fetch high returns by investing small amounts of money regularly, opening a Post Office Recurring Deposit Account is a great way to start.

Post Office RD also gives you better interest rates. The benefits of this scheme are that the minimal amount can be as low as Rs 100 and there is no upper limit on investment.

Post Office Recurring Deposit Interest Rates

This scheme is one of the more popular choices as it offers an interest rate of 5.8 per cent. This was the latest rate of interest that was rolled out by the government and made effective from April 1, 2020. The central government fixes the interest rates of its small savings schemes every quarter.

Post Office Recurring Deposit: How to Get Rs 16 Lakh?

To highlight the effectiveness of the Recurring Deposit investment, consider this: If you invest Rs 10,000 every month at the current interest rate of 5.8 per cent, then in 10 years’ time that amount would compound to give you around Rs 16 lakh in returns. The compound interest is calculated every quarter, making it highly effective as it helps investors generate earnings on a frequent basis.

Post Office Recurring Deposit Features

If by some chance you skip a month or miss a payment, then you have to pay a penalty of one per cent every month. If you miss four months of instalments in a row, the account will be closed automatically. However, you can still retrieve the account within 2 months from the date of default, but if you miss the window, it will be permanently closed.

It is also worth noting that Post Office RD, or Post Office Recurring Deposit, allows applicants to withdraw up to 50 per cent of their deposit balance a year after the account has been opened

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