Investing in the post office has become a popular way for people to earn money in today’s time, with individuals putting in lakhs of rupees into the savings schemes offered by the post office. The Post Office assures a 100% security guarantee on the money invested, and it is ensured that investors receive their returns on time.Some time ago, the post office significantly increased the interest rates offered in its savings schemes, resulting in people earning higher returns. Investing a modest sum of ₹4,000 per month in the post office can yield substantial returns over time.
Post Office RD Scheme
The Post Office RD Scheme is a savings plan operated by the post office that offers considerable interest rates on investments. The RD Scheme, commonly referred to as the Recurring Deposit (RD) Scheme, allows individuals to invest and receive returns with interest at regular intervals. At present, the Post Office RD Scheme is quite popular across India, indicating that people are benefiting significantly from this scheme.
Currently, the interest rates in this scheme are quite attractive. The Post Office RD Scheme requires investors to commit their funds for a limited period, and after the maturity period, the entire deposited amount, along with interest, is returned to the investor.
RD Scheme Interest Rate
Speaking of the interest rates in the Post Office RD Scheme, if you invest your money in this scheme for 5 years, the Post Office offers an interest rate of 6.7%, as of now. Additionally, the interest rates have recently seen an increase. It’s worth mentioning that different interest rates are provided on funds deposited in the savings schemes of the post office for different durations.
How to Open an Account in the Scheme
Any citizen of India can open an account in the Post Office RD Scheme and start investing. You need to visit any nearby post office to open an account in the Recurring Deposit Scheme since these accounts can only be opened at the post office.
Apart from this, you can invest a minimum of ₹100 in this account through the post office. You can open more than one account in your name and also earn money by investing in these accounts under your name. Currently, the interest rates offered by the post office are quite favorable.
Returns in 5 Years
If you wish to invest your money in the Post Office RD Scheme, it’s essential to note that if you invest ₹4,000 every month for 5 years, your total investment will be ₹2,40,000. The Post Office provides a benefit of 6.7% interest rates on this investment as of now. With this interest rate, the post office gives you a total of ₹2,85,459 in 5 years on an investment of ₹4,000 per month, including both interest and the invested amount.
It’s important to note that you can extend this scheme for an additional 5 years just before the completion of the plan. However, for this, you need to provide written information to the post office and apply for an extension, stating that you want to extend the RD Scheme for an additional 5 years.