Money making alert! This post office scheme gives you Rs 16 lakhs by investing Rs 10,000 a month| Here is how - Calculation explained!

There is a post office scheme which assures long-term wealth generation without any risk. This scheme—Post Office Recurring Deposit scheme — is not only safe but gives you long-term wealth appreciation by investing as little as just Rs 100 per month.

It also offers the facility of both single account and joint account. A joint account can have a maximum of three adults. Names of children above 10 years of age can also be opened by the account guardian under his care. RD’s maturity is five years, but by applying before maturity, you can extend it for the next 5 years. There is no maximum limit to the amount that can be invested. Post office RD deposit account is a government guarantee scheme of depositing small installments with a better interest rate.

Here is how you can get Rs 16 lakh by investing Rs 10,000 a month
 If you invest Rs 10,000 every month in the RD scheme of the post office for 10 years, then you will get Rs 16.28 lakh on maturity. The point to note is that if you do not deposit the RD installment on time, you will have to pay a fine. If the installment is delayed, you will have to pay a penalty of one per cent every month. With this, if you do not deposit four consecutive installments, then your account will be closed. However, once the account is closed, it can be activated again for the next two months.

How to get started  
You will have to open an RD account for a minimum of 5 years in the Post Office. Every quarter (at the annual rate), interest is calculated on the deposits. It is then added to your account with compound interest at the end of every quarter. According to the India Post Office website, an interest of 5.8 per cent interest is currently being paid on RD scheme. This new rate is applicable from July 1, 2020. The central government has announced interest rates every quarter in all its small saving schemes. 

What is the interest rate on offer?

You have to open an RD account for a minimum of 5 years in the Post Office. Every quarter (at the annual rate), interest is calculated on the deposits. It is then added to your account with compound interest at the end of every quarter. According to the India Post Office website, an interest of 5.8 per cent interest is currently being paid on RD scheme. This new rate is applicable from July 1, 2020. The central government has announced interest rates every quarter in all its small saving schemes. 
Accounts related to the RD scheme of the Post Office

One can deposit at least Rs 100 per month in the RD account and the maximum amount in multiples of 10. A nomination facility is also available at the time of account opening. After three years from the date of opening the account, the facility of premature closure will be available. Interest rates change on a quarterly basis. The account can be transferred from one post office to another. The penalty has to be paid for not depositing on time. It will be 1 rupee per 100 rupees. There is also a facility to take a loan up to 50 per cent of the deposit after one year, which can be repaid outright with interest. There is also a facility to submit online through an IPPB saving account.

See Zee Business Live TV Streaming Below: