Post Office RD: Save Rs.100 daily, get over Rs 2 Lakh; know benefits and interest rates

The Post Office Recurring Deposit (RD) scheme is a small savings scheme that offers a safe and steady income. It is suitable for those who want to save a fixed amount regularly. It allows you to earn high returns through the compound interest rate.

Under this scheme, a fixed amount must be deposited every month. The total amount can be received when the scheme matures. This scheme is a great opportunity to build a large corpus for the future through small savings.

The maturity period of this scheme is 5 years. After maturity, it can be extended for another 5 years. If the account holder dies, the nominee can receive the maturity amount or continue the scheme.

An interest rate of 6.7% is offered under this scheme. This interest rate is calculated and paid quarterly. This gives the investor a higher return at maturity. This interest rate is also higher than many bank savings schemes.

An individual or joint account can be opened in this scheme. In addition, parents or guardians can open an account for children under 10 years of age. You can deposit as much as you want, from a minimum of Rs.100, depending on your preference and convenience. There is no maximum limit for deposits in this scheme.

One year after opening an account, you can take a loan of up to 50% of the deposited amount. The interest rate for this loan will be 2% higher than the interest paid on the recurring deposit account.

In the Post Office RD scheme, if you save Rs.100 daily and deposit Rs.3,000 every month, you will get a maturity amount of Rs.2.14 lakh after 5 years. The total amount invested is Rs.1,80,000. The interest income alone will be Rs.34,097.