Post Office Scheme: People are focusing on investment options where they can earn good interest on their amount but poor investment practices often increase the risk of losing wealth. Due to online fraud and scams people are afraid of investing their money online and banks are not giving good interest rates. So what can be done? Post Office’s schemes are a good option as these schemes are considered risk-free investment options. People who want to invest their money can opt for post office small savings plans that also give good interest rates. Let’s check out. Recurring Deposit Scheme The Recurring Deposit Scheme also called Post Office RD Scheme is a scheme that gives a substantial amount of money in a short period of time. By investing in this scheme an individual can earn a good amount of money just from the interest. The best part of the government-run savings scheme is that it is completely risk-free. People can accumulate Rs 8 lakh by investing just Rs 5000 per month in the Post Office RD scheme. The interest earnings will be more than Rs 2.54 lakh under the RD scheme. Higher Interest Rates The Post Office RD scheme offers higher interest rates as compared to any FD scheme. It offers an annual interest rate of 6.7 percent which is compounded quarterly. Calculation Of The Post Office Rd Scheme An individual has to invest Rs 5000 every month in a recurring deposit account until the maturity period which is five years. The total investment will be Rs 300000. The interest earned on the principal amount at the rate of 6.7 percent will be Rs 56830. The total amount will be Rs 356830 in five years. How To Earn More? If an individual extends his/her RD for another 5 years. This will allow your invested amount to grow faster. There is also an option to extend the maturity period of RD scheme from 5 years to 10 years. In this case an individual will invest Rs 600000 in 10 years and the total interest earned will be Rs 254272. The total accumulated corpus in 10 years will be Rs 854272.