RD is a government guaranteed scheme and is available in banks and post offices everywhere. You will get this scheme in banks with tenure ranging from 1 year to 10 years and you can choose the tenure as per your convenience.
Recurring Deposit Scheme is like a piggy bank in a way, in which you have to deposit a fixed amount every month and on maturity you get the amount along with interest. Recurring deposit is a better scheme for those people who cannot invest lump sum amount in any scheme. In such a situation, by depositing a fixed amount every month through RD, they can save money and also earn profits.
RD is a government guaranteed scheme and is available in banks and post offices everywhere. You will get this scheme in banks with tenure ranging from 1 year to 10 years and you can choose the tenure as per your convenience. But if you want to start RD in the post office, then you will have to do it for 5 years straight. You get very good interest on 5 year RD of Post Office. This interest is so much that it will not be available in many banks. If you are also looking for such a safe investment option, then Post Office RD can be a better option for you.
How much interest on post office RD
Post Office RD can be started with just Rs 100, an amount that anyone can easily save. There is no maximum investment limit in this. You get the benefit of compounding interest on Post Office RD. At present the interest rate is 6.7%. Interest is calculated every quarter. In such a situation, you get a good profit in the form of interest in 5 years.
How much profit on RD of 5000 months
If you deposit Rs 5,000 every month in Post Office RD, then in 5 years you will have a deposit of Rs 3,00,000. If the interest on this is calculated at the rate of 6.7 percent then the interest amount will be Rs 56,830. In such a situation, a total of Rs 3,56,830 will be received after maturity.
Loan facility also
If you deposit 12 consecutive installments in the five-year recurring deposit scheme of the post office, then you get the loan facility. That means, to avail this facility, you will have to deposit the amount continuously for at least one year. After one year, you can take a loan up to 50 percent of the amount deposited in your account. You can pay the loan amount in lump sum or in equal monthly installments. Interest on the loan amount will be applicable at 2% + RD interest rate applicable on RD account.
Facility of pre-mature withdrawal also
The maturity of RD account is 5 years. But, pre-mature closure can be done after 3 years. It also has the facility of nomination. At the same time, after maturity, RD account can be continued for further 5 years. A person can open any number of accounts in the Post Office Recurring Deposit Scheme. In this, apart from single, joint account can be opened for up to 3 persons. There is a facility to open an account in the name of the child also.
