With the help of Post Office Recurring Deposit (RD), you can easily create a big fund. If you keep investing a fixed amount every month in it. If you continue investing for 5 years, then you will have a big amount in your hand on maturity.
Post Office Investment Schemes
Whenever we have a lump sum amount and think of investing, the first thing that comes to our mind is Fixed Deposit. This is because the return of FD is fixed. Also, there is no risk. But, before taking a decision about investment, we often forget to look into the post office schemes. Like banks, post offices also run investment and savings schemes. These schemes are of both short and long types. Post Office Recurring Deposit Scheme is one such scheme.
Post Office Recurring Deposit
With the help of Post Office Recurring Deposit (RD), you can easily create a big fund. If you keep investing a fixed amount every month in it. If you continue investing for 5 years, then you will have a big amount in your hand on maturity.
Post Office Recurring Deposit
With the help of Post Office Recurring Deposit (RD), you can easily create a big fund. If you keep investing a fixed amount every month in it. If you continue investing for 5 years, you will have a big amount in your hand on maturity.
Who can open an account?
Any person can open an RD account in the post office. If you are 10 years or older, you can operate it yourself. 3 people can also operate it together in a joint account. The minimum limit for investing in the RD scheme of the post office is Rs 100. The maximum limit is not fixed.
How much interest is being given now?
Right now 6.70% annual interest is being given on RD. The interest rate is compounded on every quarterly basis. That means you get interest on interest as well. If you take a loan on RD, then you will be charged interest on the loan amount as 2% + interest rate applicable on RD account. That means you will get loan at an interest rate of 8.7% per annum.
How much loan will you get?
You can also get a loan on the money deposited in RD. If you deposit 12 installments continuously in a five-year RD, then you can avail the facility of a loan of 50% of the deposited amount. There is no need to break the RD for this. The interest on this loan is less than that of a personal loan.
