When it comes to growing money in a safe and reliable way, most people opt for bank FD or post office scheme. Everyone knows bank FD, but post office schemes are also very beneficial especially for small investors. In these, your money remains safe and the returns you get are also fixed. If you want to invest small amounts of money regularly, then Post Office Recurring Deposit (RD) scheme can be a great option for you.
What is Post Office RD Scheme?
In the Post Office RD Scheme, investors deposit the amount every month as per their convenience. The biggest advantage of this scheme is that your money remains safe and the interest rate is fixed. At present the interest rate on Post Office RD Scheme is 6.7 percent.
The maturity period of this scheme is 5 years. That means after 5 years you can get a lump sum amount including your deposit amount and interest. You can start investing with just Rs 100 per month. There is no maximum limit for investment in this scheme, so you can invest as much as is convenient for you.
How to create a fund of Rs 10.70 lakh by investing every month?
If you want your fund to reach Rs 10.70 lakh in 5 years, then you will have to invest Rs 15,000 in RD every month. If this investment is continued continuously for 5 years, the total deposit amount will be around Rs 9 lakh. At the same time, the interest received during this period will be around Rs 1.70 lakh.
In this way, small investments create a large fund in the long run. This method of RD scheme is ideal for those who are saving every month and want to increase it gradually.
Benefits of RD scheme
There are many benefits of this scheme. In this, your money remains safe, you get fixed interest on the deposited amount every month and you can start with less investment also. By investing in this scheme you can make good returns in the long run. Post Office RD Scheme is best suited for those who want to convert small savings into regular investments and build a bigger corpus in the long run.
