Turn small savings into Rs 14 lakhs in 5 years — Here’s how

Many people save a portion of their earnings, but often lack clarity on where to save. Today, let's explore a beneficial scheme perfect for such individuals. 

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Growing Financial Discipline:

Currently, financial discipline is on the rise. With changing needs and increasing expenses, more people are saving. They seek low-risk options with good returns. The Post Office offers various schemes for such individuals, and the RD scheme is one such option.

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What is the RD Scheme:

The Post Office offers the RD (Recurring Deposit) scheme. This savings plan provides safe returns with no risk. You can invest from ₹100 monthly and earn fixed interest. The maturity period is 5 years, but you can withdraw after 3 years with reduced interest or take a loan.

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₹14 Lakhs in 5 Years:

To earn ₹14 lakhs in 5 years, invest ₹20,000 monthly in the RD scheme. Your total investment will be ₹12,00,000, and you'll earn approximately ₹2,27,320 in interest, totaling ₹14,27,320.

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Interest Rates

This calculation is based on the current interest rate of 6.7% for the RD scheme. Returns may vary if interest rates change in the future.

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How to Open an Account:

To invest in the RD scheme, visit a post office and fill out the RD account opening form. You'll need your Aadhaar card, PAN card, a passport-size photo, and nominee details. You can open an account with a minimum of ₹100. This scheme is ideal for regular monthly savings.