Post Office RD: Do you know that small savings can give you guaranteed income? Yes, there are many such government schemes, in which a substantial fund can be made in the long term by investing even just Rs.100.
One of these schemes is the Post Office Recurring Deposit Scheme (5-Year Post Office Recurring Deposit Account). From January 1, 2023, the RD of the post office is getting 5.8 percent interest annually. In this compounding of interest is done on quarterly basis.
Post Office Recurring Deposit (PORD) has a maturity of five years and can be extended once for 5 years. That is, you can run your account for 10 years. With a monthly deposit of Rs 10,000 in PORD, we understand that in the next 5 years and 10 years, we will make huge guaranteed corpus. There is no risk on deposits in the post office and your money remains completely safe.
Post Office RD Calculation
According to the information available on the post office website, you can start investing in Recurring Deposit (RD) from just Rs 100 in the post office. It has the facility that once you have opened an account with Rs.100, you can make further deposits in multiples of Rs.10 each. There is no maximum investment limit in this. 5.8 percent interest is being received annually in the post office RD. In this compounding of interest is done on quarterly basis.
₹10,000 Deposit: How Much Funds in 5 Years
According to the Post Office RD calculation, if you deposit 10,000 every month in the monthly scheme, then after 5 years you will have a guaranteed fund of Rs 6,96,968. Your investment in this will be Rs 6 lakh. Whereas, the earning from interest will be Rs 96,968.
₹10,000 Deposit: How Much Funds in 10 Years
According to the Post Office RD calculation, if you deposit Rs 10,000 every month in the monthly scheme and extend it for a further 5 years after maturity, then after 10 years you will have a guaranteed fund of Rs 16,26,476. Your investment in this will be Rs 12 lakh. Whereas, the earning from interest will be Rs 4,26,476.
In this calculation of the post office, know that 5.8 percent interest has been taken annually for the entire period of investment. The government reviews the Small Savings Schemes on a quarterly basis. Any number of accounts can be opened by a person in the RD of the post office. In this, apart from single, joint account can be opened for up to 3 persons. Guardian account can be opened for minor.
PORD: Learn the rules for taking a loan
Loan can also be taken on RD account in post office. The rule is that after depositing 12 installments, a loan can be taken up to 50% of the amount deposited in the account. The loan can be repaid in lump sum or in installments. The interest rate of the loan will be 2 percent more than the interest on RD. It also has the facility of nomination. The maturity of post office RD account is 5 years. But, pre-mature closure can be done after 3 years.