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 compounded for three months.
How much will be the return
If you opened RD account in post office with only Rs 100 per month, then in 5 years (60 months) you will deposit total 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 an account
Any person above the age of 18 years can open his account in the RD scheme of the post office. A joint account can also be opened in this scheme. A minor’s account can also be opened on behalf of a guardian. If a minor is 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 plan.
Benefit of loan facility
Terms of Premature Closure
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. The account holder will get the interest even after closing the account.
safest way to invest
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. With the convenience of investing as little as Rs 100, there is also the benefit of government security on deposits.