The Post Office Recurring Deposit Account is widely considered to be one of the most reliable and safest ways to keep your money. Most middle-class Indians are attracted to Post Office schemes since they don’t want to risk their assets by investing in the stock market or cryptocurrencies.
Savings schemes offered by the India Post are among the most popular risk-free savings schemes in the country. Investing in good schemes with fixed and good rates of interest remains a top priority for the average middle-class citizen in India. The government-backed post office aims to meet the needs of the people. One option is to invest in Fixed Deposits and Savings Accounts at banks. However, another great alternative is to invest in the Post Office Savings Scheme, or specifically, the Post Office Recurring Deposit Account.
Post Office Recurring Deposits:
The money you invest and the interest you earn over time are both safe and secure. It is important to also note that the potential risk is very low while still generating good returns. It is a great way to start investing in something that will yield high returns by investing small amounts of money regularly by opening a Post Office Recurring Deposit Account.
RD Interest Rates:
The Post Office RD also offers better interest rates. The benefit of this scheme is that the minimum investment can be as low as Rs 100 and there is no maximum amount. There is no question that this plan is one of the more popular options because it offers a rate of 5.8%. This was the latest rate of interest that was rolled out by the government and made effective from April 1, 2020. The rate of interest on small savings schemes is fixed by the central government every three months.
Post Office RD: How to get 16 lakh rupees?
Consider this example to demonstrate how effective Recurring Deposits can be: If you invest Rs 10,000 each month and earn 5.8 percent interest, you can expect to gain about Rs 16 lakh in returns in 10 years’ time. Compound interest is calculated every quarter, making it extremely effective as it helps investors generate income frequently.
Features:
You have to pay a one percent penalty per month if you miss a payment or skip a month. Your account will be closed automatically if you miss four consecutive instalments. You can however retrieve the account within 2 months of default, but if you miss the deadline, it will be permanently closed. It is worth noting that Post Office RD, or Post Office Recurring Deposit, allows applicants to withdraw up to 50 percent of their deposit balance a year after the account has been opened.
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