The Finance Ministry has made a big increase in the interest rate for the Post Office Recurring Deposit account. The new interest rate is effective from July 1. With a monthly investment of 10 thousand, a fund of more than 7 lakhs is created in 5 years. Let’s know about it in detail.
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The Ministry of Finance has announced a change in the interest rates of small savings schemes for the July-September quarter. Under this change, Recurring Deposit of 5 years has been made more attractive. The government increased its interest rates by a whopping 30 basis points. Now instead of 6.2 percent interest will be given on the recurring deposit of the post office at 6.5 percent. Apart from this, the interest rate has also been increased by 10 basis points on time deposits of 1 year, 2 years.
New interest rate effective from 1 July 2023
The new interest rate on Post Office Recurring Deposit is effective from 1 July 2023, which will remain till 30 September 2023. This is a scheme which is meant for medium term investors. 6.5 percent interest is available annually, but the calculation is done on the basis of quarterly compound. A minimum of Rs.100 and thereafter any amount in multiples of Rs.100 can be deposited. Let us tell you that the recurring deposit of the post office other than the bank is only for 5 years. Later it can be extended again for 5 years. During the extension, only the old interest rates will be available.
By depositing 10 thousand you will get 7.10 lakh
According to the Post Office RD Calculator, if an investor deposits 10 thousand rupees every month, then after five years he will get 7 lakh 10 thousand rupees. His total deposit capital will be Rs 6 lakh and the interest component will be around Rs 1 lakh 10 thousand.
By which date it is necessary to submit the installment
If you also want to open a Recurring Deposit account in the post office, then tell that if the account is opened between 1-15th, then it will have to be deposited by 15th of every month. If the account is opened in a month after 15th, then the installment will have to be deposited by the end of every month.
Haste of 1 day will cause big loss
Loan facility is also available after depositing 12 installments. The rate of interest will be 2 percent more than the RD account interest rate. If the account is closed even 1 day before 5 years, then the benefit of only savings account interest will be available. Right now the interest rate on savings account is 4 percent.
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