Rs 5,000 and Rs 10,000 monthly deposits give you Rs 3,56,830, and Rs 7,13,659 on maturity in this small savings scheme

National Savings Recurring Deposit Account (RD): When one have small savings and want to save money to invest, the first thing that they want to know are the options that allow them to deposit money in small amounts and at regular intervals instead of depositing a large lump sum amount. For such people, small savings schemes play a key role, as they allow people to deposit money in non-market-linked schemes that give them guaranteed returns and return the principal amount on maturity. Post office runs a number of small savings scheme catering to people from remote villages to large cities.

National Savings Recurring Deposit Account (RD), or Post Office RD, is one such scheme, where one can deposit small amounts in their account and get interest on it.

The account has a maturity period of five years, which can be extended further.

The scheme also provides loan facility. One can make advance deposits or can close the account prematurely.

Know features of this post office's guaranteed return scheme and what will you get on a Rs 5,000, Rs 10,000, Rs 15,000, and Rs 20,000 monthly deposits in the RD account can give you after five years. 

The RD scheme provides 6.7 per cent annual interest that is compounded quarterly.

The minimum investment in the account is Rs 100 and in multiples of Rs 10, while there is limit for the maximum deposits.

One can have a single, join account, or a guardian can open an account on behalf of a minor or a person of unsound mind.

A minor above 10 years of age can also open an account in their name. 

A fee of Rs 1 is charged for Rs 100 denomination account if the deposit is not made in a month.

After four regular defaults, the account can be discontinued and can be revived within two months. 

One can make advance deposits for five years in their account at the time of opening it and thereafter.  

If one has deposited 12 instalments and the account is continued for a year, they are eligible for 50 per cent of the balance credit in the account.

Interest on loan will be applicable as 2 per cent + RD interest rate applicable to the RD account.

The RD account can also be closed prematurely after 3 years from the date of opening the account.

What Rs 5K, Rs 10K, Rs 15K, and Rs 20K monthly instalments will give you on maturity?

If you deposit Rs 5,000 a month

If your monthly deposit is Rs 5,000, or a total of Rs 300,000 in five years, at the rate of 6.70 per cent, you will get an interest of Rs 56,830 and the maturity amount will be Rs 3,56,830.

If you deposit Rs 10,000 a month

If your monthly deposit is Rs 10,000, or a total of Rs 600,000 in five years, your interest will be Rs 1,13,659 and you will get Rs 7,13,659 on maturity.

If you deposit Rs 15,000 a month

If your monthly contribution is Rs 15,000, or a total of Rs 900,000 in five years, you will get Rs 1,70,492 in interest and the maturity amount will be Rs 10,70,492.

If you deposit Rs 20,000 a month

If your monthly deposit is Rs 20,000, or a total of Rs 12,00,000 in five years, you will get an interest of Rs 2,27,315 and the maturity amount will be Rs 14,27,315.