New Delhi: In an era where market volatility challenges investors, the Government of India’s Post Office Recurring Deposit (RD) scheme offers a secure and assured way to grow savings.
With a guaranteed annual interest rate of 6.7% compounded monthly, this scheme transforms small monthly investments into significant wealth over five years.
Ideal for those unable to invest large sums in a lump, the RD scheme allows investors to deposit a fixed amount every month for a period of five years (60 months). For instance, a monthly investment of ₹25,000 results in a maturity amount of approximately ₹17.84 lakh, combining ₹15 lakh principal and ₹2.84 lakh interest. This guaranteed return comes with zero market risk, providing a dependable savings avenue.
Smaller monthly contributions also yield impressive results:
₹10,000 per month matures to around ₹7.13 lakh.
₹5,000 per month grows to nearly ₹3.57 lakh after five years.
Citizens across India can open a single or joint RD account at any Post Office. Parents or guardians may also open an RD account on behalf of minors aged over 10 years. The minimum monthly deposit is ₹100, with no upper limit, allowing flexibility based on individual financial capacity.
The scheme also offers convenient features such as loan facility against the RD account after 12 monthly installments and premature closure option after completing three years. To avoid penalties, investors must ensure timely monthly deposits; late payments attract a nominal fine of ₹1 per ₹100 delayed.
Moreover, account holders are encouraged to designate nominees to ensure smooth transfer of funds and interest in case of unforeseen events.
This Post Office RD scheme stands out as a disciplined, risk-free investment that suits middle-class Indians seeking steady growth in their savings over time.