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| Edited By: DNA Web Team |Source: DNA webdesk |Updated: Mar 07, 2022, 11:00 PM IST
Schemes offered by the Post Office are one of the most trusted, safe and secure investment options in today’s highly volatile financial scenario. For people looking for risk-free options to get great returns on their savings, this scheme is a perfect investment option.
Persons looking to get high returns by investing small sums of money should turn their attention to the scheme offered by Post Office. The scheme guaranteeing terrific returns with a meagre investment is called the Post Office Recurring Deposit scheme. Guaranteed by the government the Post Office RD scheme lets individuals deposit small sums in their account on an improved rate of interest. In fact, you can earn a handsome amount by investing as less as Rs 100. It is to be noted that the scheme has no maximum limit for the amount invested.
Interest rate guaranteed in the Post Office Recurring Deposit scheme
A person investing in the scheme needs to open an RD account with the Post Office for a minimum period of 5 years. The interest is calculated on the deposits every quarter, based on the annual rate. The sum is added to account at the end of each quarter, along with compound interest. Currently, an interest of 5.80% is being offered on the RD scheme by the Post Office.
Get Rs 16 lakh from an investment of only Rs 10,000
An investment of Rs 10,000 every month in the RD scheme for a period of 10 years will fetch you a grand total of Rs 16.28 lakh at the time of maturity. Persons investing in the scheme should be aware that inability to timely deposit the instalment will entail a fine. A penalty of 1% per month will have to be paid in case of a delayed payment of instalment. Furthermore, not depositing four consecutive instalments will invite closure of the account. Nevertheless, an accountholder can reactivate the RD account for the next two months.
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With this, if you do not deposit four consecutive instalments, then your account will be closed. However, once the account is closed, it can be activated again for the next two months.