Post Office RD Scheme: Recurring Deposit (RD) has always been seen as a safe investment option to invest savings money. If you also want to invest in RD, then under the RD scheme scheme of Post Office, you can start investing for just Rs 100 per month. According to the Indian Postal Department, at present, the benefit of 5.8 percent annual interest is available on Post Office RD. Tax also has to be paid on the interest earned from RD. The most important thing about this scheme is that the interest rate in RD is on the basis of compounding of three months.
How much will be the return
If you opened an RD account in the post office at the rate of only Rs 100 per month, then in 5 years (60 months) you will deposit a total of Rs 6,000. On maturity of RD after 5 years, you will get a total of Rs 6970. That is, a total profit of Rs 970 as interest.
Who can open account
In the RD scheme of the post office, any person above the age of 18 years can open his account. A joint account can also be opened in this scheme. A minor’s account can also be opened on behalf of a guardian. If there is a minor above the age of 10 years, then the account can be opened in his name also. You can open as many accounts as you want under this scheme.
Benefits of loan facility
You can also take advantage of the facility of taking a loan through the Post Office RD scheme. If you have deposited your 12 installments under this scheme, then up to 50 percent of the amount deposited in your account can be taken as a loan. But on the loan, 2 percent more interest will have to be paid than the interest on RD. If the loan is not repaid till the period of RD, then the amount given as loan will be deducted from the maturity amount.
Deposit amount
To invest in the RD scheme of Post Office, you have to deposit at least Rs 100 every month. If your account is opened within the first 15 days of the month, then you have to deposit Rs. At the same time, if you have opened your account after the first 15 days of the month, then you will have to deposit money in the account before the last date of the month.
Premature Closure Terms
RD account is opened for 5 years in which money will have to be deposited in the account every month for 60 months. RD Account can be closed only after 3 years of opening. For this an application will have to be made in the post office. Even after closing the account, the interest that is there will be available to the account holder.
Safest mode of investment
Experts believe that if someone has less ability to save and wants to invest in a scheme, then Post Office RD can prove to be the safest medium of investment. Along with the facility of investing with a very small amount of Rs 100, the benefit of government security is also available on the deposit amount.
