Everyone wants to save money and secure the future, but it is not easy to choose the right investment option. Post office Recurring Deposit (RD) scheme is a golden opportunity that is not only safe, but can also help you to make a fund of ₹ 20 lakh in 5 years. Let us know how much will be made every month under this scheme and how it can turn your dreams into reality.

Post office rd specialty

The RD scheme of the post office is created for small and regular investors. In this, you deposit a certain amount every month, and after 5 years you get a hefty amount including interest. This scheme is special because it is completely safe and supported by the government. Currently, the post office RD is getting an annual interest rate of 6.7%, which increases your investment rapidly with a compound interest. The biggest feature of this scheme is that you do not need big capital to start it.

How to achieve a target of ₹ 20 lakh?

If your goal is to create a fund of ₹ 20 lakh in 5 years, then you will have to invest a planned amount every month. According to the calculation, to get ₹ 20 lakh at an interest rate of 6.7%, you have to invest around ₹ 30,000 every month. This amount may be slightly less or less depending on the duration of your investment and interest rate. However, this amount may look large to hear, but it can be a practical goal for the middle class, provided you manage your savings and expenses correctly.

Why choose post office RD?

The popularity of the post office RD is its simplicity and reliability. This scheme is ideal for those who want to avoid risk and are looking for fixed returns. In addition, you can choose the amount of investment according to your convenience in this scheme, and it can be easily started in any post office. This scheme is especially beneficial for those who want a disciplined savings scheme for long periods.

Keep these things in mind before investing

It is important to take care of some things before starting investing in RD. First of all, calculate your monthly income and expenses so that you can invest regularly. Second, make sure that you can continue this scheme for 5 years, as interest can be cut on premature withdrawal. In addition, take complete information about the interest rate and other conditions from the post office so that you are not surprised.