Post Office’s small savings schemes are preferred for providing safe investment as well as great returns. One such popular scheme is Post Office RD which is a scheme that makes you a millionaire.
By investing a fixed amount every month in this, you can accumulate a fund of more than Rs 8 lakh in 10 years. Let’s understand the complete calculation…
This much interest in this scheme of the post office
Saving schemes are being run in the post office for every age group, be it children, old or young. The Post Office Recurring Deposit Scheme included in these has emerged as a bad option for investment. The maturity period in this scheme has been fixed for 5 years, which can also be increased to 10 years. Last year in 2023 itself, the interest rate on investment in it was increased from 6.5% to 6.7%.
You can open
an account in Post Office Recurring Deposit Scheme by going to any nearest post office. Investment can be started from Rs 100, while no limit has been set for maximum investment. The maturity period of this scheme is five years. An account can also be opened in the name of a minor in Post Office RD. However, parents are also required to provide their name along with the document.
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Loan facility with pre-mature closure
If you have opened an account in Post Office RD Scheme and are thinking of closing it due to any problem, then the facility of pre-mature closure is also given in this scheme of post office. Yes, if you want, you can close the account before the maturity period is over. Loan facility is also given in this. However, after the account is active for one year, only up to 50 percent of the deposit amount can be taken as loan. Talking about its interest rate, it is 2 percent more than the interest rate you are getting
This is how you can collect more than Rs 8 lakh in 10 years.
If we calculate the investment and interest in Post Office RD, then if you invest Rs 5,000 every month in this scheme, then in its maturity period i.e. five years, you will deposit a total of Rs 3 lakh and Rs 56,830 will be added to the interest at the rate of 6.7 percent. After this, your total fund will be Rs 3,56,830.
Now if you extend this account for another five years, then the amount deposited by you in 10 years will be Rs 6,00,000. Along with this, the interest amount on this deposit at the rate of 6.7 percent will be Rs 2,54,272. If seen in this way, then your total fund deposited in a period of 10 years will be Rs 8,54,272.
Keep in mind here that TDS is deducted on the interest earned on investment in Post Office RD Schemes, which is refunded as per the income after the investor claims ITR. 10 percent TDS is applicable on the interest earned on RD. If the interest earned on RD is more than Rs 10,000, then TDS will be deducted.
