How to get ₹ 15 lakh in 5 years from Post Office RD scheme, see step-by-step calculation

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How to get ₹ 15 lakh in 5 years from Post Office RD scheme, see step-by-step calculation
How to get ₹ 15 lakh in 5 years from Post Office RD scheme, see step-by-step calculation
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If you want to start investing but do not have a large lump sum available, then there is no need to worry. Post Office’s Recurring Deposit (RD) scheme can be a reliable and safe option for you.

This scheme is especially for those people who want to create a big fund for the future by saving a fixed amount every month. In this, not only your money is safe, but being backed by the government, it also gives good returns.

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What is the Post Office RD scheme?

Post Office RD is a 5-year deposit scheme in which you can start investing with a minimum of ₹ 100 every month. Currently, it is offering an interest rate of 6.7% per annum, which is compounded on a quarterly compounding basis. There is no maximum investment limit in this scheme.

How to create a fund of lakhs from small savings?

Suppose you deposit ₹21,000 every month in a post office RD.
So after 5 years i.e. 60 months, you will get a total return of about ₹14,98,682.

Total Deposit: ₹12,60,000
Total Interest Earned: ₹2,38,682

This calculation shows how you can build a large corpus through regular small savings.

If you extend it for 5 more years, the returns can be close to double.

The most special thing about this scheme is that you can extend this account for another 5 years after maturity. If you continue investing for 10 years, your investment and interest will be as follows:

Total Investment Amount: ₹25,20,000
Interest Income: ₹10,67,944
Total Return: ₹35,87,944

In this, you not only keep the principal amount safe but also earn a good amount of interest.

– Loan facility is also available.

If you need money in between, you can take a loan of up to 50% of your investment after completion of one year of the account and depositing 12 installments. The interest rate on this loan will be – RD interest rate + 2%.

Why is this scheme special?

– Government backed and safe
– Guaranteed returns with fixed interest rate
– Opportunity to create a big fund with small investment –
Option to carry forward the account after maturity
– Loan facility available on investment

 

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