If you want to save some money from your salary or earnings every month and invest it in a safe place, Post Office Recurring Deposit (Post Office RD) scheme can be a good option.
There is no need to invest a large amount at once but a good fund can be built gradually by depositing fixed installments every month.
Duration 60 months
The duration of this scheme is 5 years ie 60 months. Based on 6.7% annual interest rate if you deposit ₹6,000 per month, you can get around ₹4.28 lakh on maturity.
The special thing about this investment is that you don’t have to worry about the ups and downs of the stock market. Interest on Post Office RD is charged at the rate fixed by the Government. However, it is necessary to confirm the current interest rate and terms associated with the account before starting the investment.
What will be the amount after 5 years on depositing ₹6,000 per month?
- Estimated maturity amount after 5 years: ₹4,28,185
- Deposit per month: ₹6,000
- Duration of Investment: 60 months
- Your Total Deposit Amount: ₹3,60,000
- Estimated interest: ₹68,185
Calculation is based on 6.7% annual interest rate and compounded quarterly. The actual maturity amount may vary as per the applicable rules.
If you deposit ₹6,000 every month for 5 years, a total of ₹3.60 lakh will go out of your pocket. An interest of around ₹68,185 can be added to this and the total amount can be around ₹4.28 lakh.
Post Office RD’s ‘5 Big Things’
- Starting with a small amount: An account can be opened at Post Office RD with a minimum of ₹100 per month.
- Duration of 5 years: The typical investment tenure in this scheme is 60 months.
- Quarterly Compound Interest: Interest is calculated quarterly.
- Loan Facility: A loan facility of up to 50% of the deposited amount can be availed if the account remains open for a minimum of 12 months and upon fulfillment of specified conditions.
- Early Termination Option: Generally the account can be prematurely closed after completion of 3 years. In this case the interest may be reduced as per applicable rules.
Note: The information provided here is for information only. TV9 Gujarati does not in any way advise investing or selling in shares, gold and silver, mutual funds and IPOs. Investing in the market involves potential risk. Always consult your financial advisor or market expert before investing.
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