RD post office scheme: Invest Rs 5000 and get a return of almost Rs 8.5 lakh by maturity period; check full details

Recurring deposits (RDs) operate similarly to fixed deposits but with a unique twist: rather than depositing a lump sum upfront, investors commit to making regular monthly deposits. RDs aim to instill consistent saving habits among earners, encouraging financial discipline and steady investment.

ZeeBiz WebTeam | Jun 11, 2024, 07:18 PM IST

Recurring deposits (RDs) function similarly to fixed deposits but with a distinct feature: instead of depositing a lump sum amount, investors commit to making fixed monthly deposits. RDs are designed to foster regular saving habits among earners, promoting financial discipline and consistency in investment. They are widely available, offered by numerous banks and financial institutions. RDs offer flexibility in terms of deposit amounts and durations, allowing investors to tailor their savings plans to their specific goals and financial capabilities. With competitive interest rates, RDs provide a reliable means of steadily growing savings over time, aiding individuals in achieving both short-term and long-term financial objectives. Overall, RDs serve as a valuable tool for cultivating saving habits and realising financial goals.

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Interest Rates and Compounding

Interest Rates and Compounding

From 01.01.2024, the interest rate is 6.7% per annum, compounded quarterly.

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Minimum and Maximum Balance

Minimum and Maximum Balance

The minimum amount for opening an account is Rs 100 per month, with no maximum limit.

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Eligibility to Open Accounts

Eligibility to Open Accounts

Single adults, joint accounts (up to 3 adults), guardians for minors or those of unsound mind, and minors above 10 years can open accounts.

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Deposits

Deposits

Cash or cheque deposits are accepted, with subsequent deposits required by the 15th or last working day of the month, depending on the account opening date.

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Advance Deposit

Advance Deposit

RD accounts not discontinued can accept advance deposits up to 5 years with rebates available.

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Premature Closure

Premature Closure

RD accounts can be closed prematurely after 3 years, with applicable interest rates.

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Maturity and Extension

Maturity and Extension

Accounts mature in 5 years but can be extended for a further 5 years, with interest rates based on the original opening rate.

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Repayment on Death

Repayment on Death

Nominees or legal heirs can claim the balance on the death of the account holder, with options to continue the account till maturity.

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What will be the return after 10 year if Rs 5,000 is invested on RD every month?

What will be the return after 10 year if Rs 5,000 is invested on RD every month?

If you will invest Rs 5,000 every month then your return will be Rs 8,44,940 in 10 years.

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What will be the return after 5 years if 5,000 is invested on RD every month?

What will be the return after 5 years if 5,000 is invested on RD every month?

If you will invest Rs 5,000 every month then you will get a return of Rs 3,54,957 in 5 years.

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