The post office operates a number of savings and investment scheme for well over a century. India has moved from the yoke of colonial rule and transitioned from a controlled economy to a market-oriented one. But the trust enjoyed by the good old post office has not diminished among the masses of India.
In order to enhance the appeal of the post office recurring deposit scheme, the interest rate payable in this scheme was raised from 6.5% to 6.7% from the beginning of 2024. It is one of the schemes that actively encourages investment every month by an individual.
Post Office RD calculator
One can also become a millionaire through the post office RD. One has to invest Rs 6,000 a month for that. Powered by the rate of interest of 6.7%, the stream of principals amounting to Rs 7.2 lakh will earn interest of Rs 3.05 lakh, generating a total amount of Rs 10.25 lakh.
Rs 7k a month
If one invests Rs 7,000 a month, then the sum accumulated over a period of 10 years would amount to Rs 11.95 lakh – principal of Rs 8.4 lakh earning an interest of Rs 3.55 lakh.
Rs 8k a month
If the investment per month is raised to 8,000, the fund accumulating at the end of 10 years will turn into Rs 13.66 lakh – the interest component being Rs 4.06 lakh on a principal of Rs 9.6 lakh. The point to note is that the interest is compounded quarterly.
Different types of RD accounts
One can open an RD account in his/her own name. Jointly it can be opened by 2 or 3 adults. A guardian on behalf of a minor or an adult opening an RD account on behalf of a person who is not mentally sound is also permitted. A minor, who is above 10 years, can also open an RD account in his/her name. One can open more than one account.
One can invest a minimum amount of Rs 100 a month and raise it in multiples of Rs 10.
Another thing that should be noted is that if one defaults in monthly contributions, the account is regarded as “discontinued” if there are 4 defaults. However, it can be revived within 2 months of the 4th default, says post office rules.
The recurring deposit scheme available in post offices is rides a popularity that is time-tested, since it offers steady predictable returns with full security. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
