Post Office Scheme: In today's time, everyone wants their money to be completely safe and also earn a good return. The stock market or risky investments are not for everyone. This is why government schemes remain the first choice for many people. If you also want to build a large fund with small daily savings, then the Post Office RD scheme can be a good option for you. By saving just Rs. 333 every day, you can earn up to Rs. 5 lakh in interest alone.

What is the Post Office RD Scheme?
The Post Office RD (Recurring Deposit) is a government savings scheme where you deposit a fixed amount every month. The biggest advantage of this scheme is that the money is completely safe, the government guarantees the interest, and even low-income individuals can easily start investing.  In short, this scheme is for those who don't want to take risks but want to see their savings grow.

How much interest is offered?
Currently, the government is offering an annual interest rate of 6.7% on the Post Office RD. An account can be opened with just Rs. 100, and the maturity period is 5 years. You can also extend it for another 5 years.

Who can open an RD account?
Any person aged 18 years or older
Single account or joint account
RD accounts can also be opened in the name of children

How to earn Rs. 5 lakh by saving Rs. 333 every day?
Saving Rs. 333 every day in this scheme will result in monthly savings of approximately Rs. 10,000. The investment period is 10 years. In 5 years, the total deposited amount will be Rs. 6 lakh. The interest earned will be approximately Rs. 1,13,659. Thus, your total fund will be Rs. 7,13,659. If you extend your investment for another 5 years, making it a total of 10 years, the total investment amount can be Rs. 12 lakh. The total interest earned will be Rs. 5,08,546, and the total amount will be Rs. 17,08,546. This means that the amount you earned exceeding 5 lakhs is solely from interest.

Loan facility is also available on RD.
Another major feature of this scheme is that it offers a loan facility. After the account is one year old, you can get a loan of up to 50% of the deposited amount. The best part is that the interest rate is only 2% higher. This means you don't have to worry about withdrawing money if needed.

Can you withdraw money before maturity?

You can withdraw money before maturity in this scheme, but there are some rules. There is an option to close the account after 3 years. In case of the account holder's death, the nominee can claim the money or continue the investment.

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