Post Office RD: Invest Rs 5,000 monthly and earn Rs 8 lakh; know the details

Post Office Recurring Deposit: The post office offers excellent savings schemes for people of all ages and income groups. Let's learn about this recurring deposit scheme which offers good returns along with a safe investment.

Post Office RD Scheme

Everyone wants to save a portion of their earnings and invest it in a safe and profitable place. Post office small savings schemes are very popular in this regard. Among these, the Post Office RD scheme is suitable for everyone.

By investing Rs 5000 per month in the Post Office RD scheme, you can get up to Rs 8 lakhs. Investing in this scheme also makes it easy to get a loan.

Post Office RD Interest Rate

In 2023, the government increased the interest rates on the Post Office RD scheme. These new rates came into effect from the October-December 2023 quarter. Currently, this scheme offers 6.7% interest.

The government revises the interest rates on post office small savings schemes every three months. The last revision on this scheme was made on September 29, 2023.

Post Office RD Benefits

Calculating investment and interest in the Post Office RD scheme is very easy. Let's see how you can get Rs 8 lakhs by investing Rs 5000 per month.

If you invest Rs 5000 per month in Post Office RD, after five years, i.e., at maturity, you will have deposited a total of Rs 3 lakhs. With 6.7% interest, you will also receive Rs 56,830 in interest. That means, in five years, your investment will become Rs 3,56,830.

Post Office RD Rules

You don't have to stop investing after five years. This RD account can be extended for another five years. This means you have to invest Rs 5000 per month for the next five years as well. In ten years, the total amount you deposited will be Rs 6,00,000. With 6.7% interest, you will receive Rs 2,54,272 in interest. That means, at maturity in ten years, you can get Rs 8,54,272.

Post Office RD Maturity

You can open an RD account at any nearby post office. You can invest from Rs 100 in this scheme. The maturity period of the Post Office RD scheme is five years. However, if you want to close the account before this period is completed, that option is also available. After 5 years, it can be extended for another 5 years.

Post Office RD Eligibility

Investors who have joined the RD scheme can close the account after 3 years, before maturity. Loan facility is also available on the investment made in this scheme. After depositing for one year in the account, you can get a loan of up to 50% of the deposited amount. However, the interest rate on this loan is 2% higher than the RD account interest rate.