Post Office RD: How Rs 30K investment per month gives over Rs 21 lakh in just 5 years under this guaranteed scheme
A post office RD is one of the most popular savings alternatives to regular fixed deposits and other long-term plans offered by post offices.
Besides providing mail delivery services, post offices provide financial services to their customers through savings plans and life insurance.
Post Office RD scheme
A post office RD is one of the most popular savings alternatives to regular fixed deposits and other long-term plans offered by post offices.
Post Office RD interest rate
The current post office RD interest rate is 6.70% per annum.
Compound interest
The interest is compounded quarterly, allowing the money placed to multiply until the maturity date.
Post Office RD Tenure
Unlike bank recurring deposits, post office RDs have a defined duration of five years.
Can you extend RD's tenure?
If one wishes to continue with the RD account after 5 years, there is a mechanism that allows the RD to be extended for a further 5 years, bringing the total duration to 10 years.
Post Office RD: Minimum and maximum deposit
As per the post office RD rules, the minimum deposit is Rs. 10 per month, and the maximum deposit has no limit.
How Rs 30K investment per month gives over Rs 21 lakh
If you invest Rs 30,000 per month then you will get Rs 21,40,074 on maturity in five years. The interest would be Rs 3,40,974 at a 6.7 per cent interest rate.