Post office RD Interest rates: Crores of people are getting good returns by investing in post office schemes. In post office refundable deposit scheme you can open an account from just Rs.100. You can get good returns after investment maturity. The current interest rate on RD will also increase so investors will get higher interest returns. Find out how much return you will get in five years if you invest in RD scheme.
Post Office has hiked interest on Recurring Deposit (RD). The government has increased its interest rate from 6.2% to 6.5% with effect from July 1. You can easily generate huge funds with RD. In this article, we are going to tell you how much money is invested in a five-year investment, how much return will you get? Before that first know what is this post office rd.
First understand what is RD?
Post Office Recurring Deposit or RD helps you in saving big. You can use it as a piggy bank. That means when you get the salary you put a fixed amount in it every month and after 5 years you have a huge amount in your hand. If you put money in the house, you will not get interest, but if you put money here, you will get interest.
SPECIAL MATTERS RELATING TO POST OFFICE RD
- RD of India Post is getting 6.5% interest
- In this you can save at least Rs 100 every month. can invest
- Beyond this, you can deposit any amount in multiples of 10.
- There is no limit to the maximum deposit amount
- 70 thousand fund if invested every month like 1 thousand for 5 years
- If you invest Rs 1 thousand per month in India Post’s RD, it will be approximately Rs 70 thousand 989 when it matures after 5 years at 6.5% annual interest rate.
Know ahead how much you invest every month how much you will get after 5 years
Tax on RD Interest If the interest income from Recurring Deposit (RD) is up to Rs 40 thousand (Rs 50 thousand in case of senior citizens), you will not have to pay any tax on it. If the income is more than this, 10% TDS will be deducted.
| Investment every month | Deposit | Interest | Amount received after 5 years |
| Rs.1,000 | 60 thousand Rs. | 10 thousand 989 Rs. | 70 thousand 989 Rs. |
| Rs.2,000 | 1 lakh 20 thousand Rs. | 21 thousand 983 Rs. | 1 lakh 41 thousand 983 Rs. |
| Rs.5,000 | 3 lakh Rs. | 54 thousand 954 Rs. | 3 lakh 54 thousand 954 Rs. |
If your income is not taxable then file Form 15H and 15G
If your annual interest income from RD is more than Rs 40 thousand (Rs 50 thousand in case of senior citizens), but your total annual income (including interest income) does not exceed the taxable limit, the bank will deduct TDS.
For this, senior citizens should submit Form 15H and others Form 15G to the bank. Form 15G or Form 15H is a self declaration form. In which you say that your income is outside the tax limit. Those filling this form will be excluded from the tax net.
Any person can open account
Any person can open RD account. Not only that, you can open one or more accounts. This account can also be opened in the name of minor children. You can perform it yourself when you are 10 years old or older. 3 people can also open a joint account together. You can start investing through any post office by opening an account there.
