Investment Tips: This Post Office Scheme can turn Rs 12 Lakh into Rs 17 Lakh; Know how

The Post Office Recurring Deposit (RD) is a popular savings scheme. Investors are required to deposit a fixed amount every month. The most important feature of this scheme is that it involves no market risk.

New Delhi: Investment and savings are an important part of every person's life. Building a large fund for children's education, marriage, or other future needs is not easy. Therefore, choosing a safe and reliable investment plan becomes paramount. The Post Office Recurring Deposit (RD) Scheme is a government scheme that is not only completely safe but also helps build a substantial fund through regular savings.

What is the Post Office RD Scheme?

The Post Office Recurring Deposit (RD) is a popular savings scheme. Investors are required to deposit a fixed amount every month. The most important feature of this scheme is that it involves no market risk. This scheme currently offers an interest rate of 6.7% per annum, and this interest is compounded. This means that you earn interest on the interest, allowing your deposit to grow rapidly.

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How to Build a Fund of Rs 17 Lakh?

• Suppose you invest Rs 10,000 per month in this scheme.
• If you invest for 5 years, you will accumulate a total of Rs 6 lakh. After adding interest, your total will be approximately Rs 7,13,659, resulting in a profit of approximately Rs 1.13 lakh.
• If you invest continuously for 10 years, your total investment will be Rs 12 lakh. Due to compound interest, this amount can grow to approximately Rs 17,08,546, resulting in an additional profit of approximately Rs 5 lakh.
• This scheme is ideal for investors who want to build a large corpus gradually and avoid any market risk.

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How to open an account and what are the rules?

• Opening a Post Office RD account is very easy.
• You can start this account with just Rs 100 per month.
• There is no maximum deposit limit. You can invest as much as you want, depending on your capacity and needs.
• A child aged 10 years or older can also open this account with their parents. Upon turning 18, they will need to complete a new KYC form.
• The term of this scheme is 5 years. The account can be extended by another 5 years if needed.
• There is also an option to close the account after 3 years.
• If the account holder dies, the nominee can withdraw the funds or continue the account.

Why is this scheme special?

The Post Office RD scheme is fully government guaranteed. It has no market risk and offers attractive interest rates. With small monthly savings, you can build a substantial fund for the future. This is why this scheme is very popular among middle-class families and working people alike.