In this plan account can be opened even from Rs 100, which gives you good returns. However, the rate of interest in this scheme is also revised from time to time. It allows people to open a post office recurring deposit account of 5 years.
Investing in Post Office is considered safe. There are many such savings schemes which give good returns. One such is the Post Office Recurring Deposit (RD) scheme. In this plan account can be opened even from Rs 100, which gives you good returns. However, the rate of interest in this scheme is also revised from time to time. It allows people to open a post office recurring deposit account of 5 years. Post Office RD is currently paying an interest of 5.8% per annum.
Post Office Recurring Deposit Term
Recurring deposit is an instrument used as a medium term investment option. The investment is made in this scheme for a minimum period of 5 years. Individuals who wish to continue with their RD even after this period can take the maximum tenure up to 10 years. RDs that have been extended beyond 5 years will continue to earn interest, which is compounded every quarter as before. Anyone who is an Indian citizen can invest in this scheme. Money has to be invested in it every month. You can approach any nearest post office branch to open an account in RD.
Delayed RD Deposit
If an account holder is unable to deposit the monthly amount in his RD and has not been able to deposit four consecutive installments, then his account will be closed. However, it can be made operational anytime within two months. As per the rule, a default penalty of Re 1 will be levied for every Rs 100. This penalty is required to be paid in addition to the missed deposit to revive the account.
Read also: If you are going to file income tax return, then know how can you verify your PAN card online?
If you want to get the maturity of 16 lakhs through RD, then you have to invest 10 thousand rupees every month by saving. You have to deposit this every month without break for 10 years. That is, on RD, for 10 years, according to 10 thousand rupees every month, your total investment will be 12 lakh rupees. On this, you will get Rs 16,26,476 according to the return of 5.8 percent in 10 years. If you are not able to invest Rs 10,000 then you can earn lakhs of rupees even by investing less than this.