Post Office Recurring Deposit Scheme: This government small savings scheme operated by the post office offers interest at the rate of 6.7 per cent, the maturity period for investment in this is fixed at five years.

Post Office’s small savings schemes are preferred for giving safe investments as well as great returns. One such popular scheme is Post Office RD which is a scheme to make a millionaire. By investing a fixed amount every month in this, you can deposit a fund of more than Rs 8 lakh in 10 years. Let’s understand the complete calculation…

This much interest in this scheme of Post Office

Saving schemes are being operated in the post office according to every age group, be it children, old or young. The Post Office Recurring Deposit Scheme included in these has emerged as the best option for investment. The maturity period in this scheme has been fixed for 5 years, which can be extended to 10 years. Last year in 2023 itself, the interest rate on investment in it was increased from 6.5% to 6.7%.

You can open an account with just Rs 100

You can open an account in the Post Office Recurring Deposit Scheme by going to any nearest Post Office. Investment can be started from Rs 100 in this, while no limit has been fixed for maximum investment. The maturity period of this scheme is five years. An account can also be opened in the name of a minor in Post Office RD. However, in this, parents are also required to give their names along with the document.

Loan facility with pre-mature closure

If you have opened an account in the Post Office RD Scheme and are thinking of closing it due to some problem, then the facility of pre-mature closure is also given in this scheme Post Office. Yes, if you want, you can close the account before the maturity period is over. A loan facility is also given in this. However, after the account is active for one year, only up to 50 per cent of the deposit amount can be taken as a loan. Talking about its interest rate, it is 2 per cent more than the interest rate you are getting.

This is how you will collect more than 8 lakh rupees in 10 years.

If we calculate the investment and interest in Post Office RD, then if you invest Rs 5,000 every month in this scheme, in its maturity period i.e. five years, you will deposit a total of 3 lakh rupees and Rs 56,830 will be added to the interest rate at the rate of 6.7 per cent. After this, your total fund will be Rs 3,56,830. Now if you extend this account for another five years, then the amount deposited by you in 10 years will be Rs 6,00,000. Along with this, the interest amount on this deposit at the rate of 6.7 per cent will be Rs 2,54,272. In this way, your total fund deposited in a period of 10 years will be Rs 8,54,272.

Keep in mind here that TDS is deducted on the interest earned on an investment in Post Office RD Schemes, which is refunded as per the income after the investor claims ITR. 10 per cent TDS is applicable on the interest earned on RD. If the interest earned on RD is more than Rs 10,000, then TDS will be deducted.