Post Office Recurring Deposit: For such investors, who are able to save up to 10 thousand in a month, it is most important for them to invest money in a place where guaranteed returns are given in a given time and money is also 100 percent safe. Post office or post office’s Recurring Deposit (RD) is one such option, where you will get a fixed interest on your deposit, as well as the money will be completely safe. Because, there is sovereign guarantee of the Government of India on the deposit of the post office, while only a maximum of 5 lakhs are safe on deposits in banks. In this way, you can create millions of funds by investing small savings every month.
The Post Office Recurring Deposit (RD) is one such scheme, which promotes small savings. By the way, its maturity is 5 years, but you can extend it even further for 5-5 years by applying. A minimum of 100 rupees has to be deposited in the RD of the post office every month. The deposit should be in multiples of 10 rupees. There is no maximum investment limit.
10 lakh to 10 million to meet so many lakhs
Suppose an investor invests 10 thousand rupees in the post office RD every month for 10 years, then he will get 16.28 lakh rupees on maturity. At present, 5.8 percent interest is being received on the post office RD. The interest is compounded on quarterly basis.
- Post office RD has the facility of both single account and joint account.
- There can be a maximum of 3 names of adult people in a joint account.
- Names of children above 10 years of age can also be opened by their account guardians under their care.
- RD’s maturity is 5 years, but by applying before maturity, you can extend it for the next 5-5 years.
- You can deposit at least 100 rupees per month in RD account and maximum amount in multiples of 10.
- Nomination facility is also available at the time of opening an account.
- There will be facility of pre-mature closure after 3 years from the date of account opening. Interest rates change on a quarterly basis.
- Account can be transferred from one post office to another.
7th Pay Commission: If parents are government employees, then on death the child will get pension of up to Rs. 1.25 lakhs / month.
- Penalty has to be paid for not depositing it on time. It will be 1 rupee for every 100 rupees.
- There is also a one-time loan facility up to 50% of the deposited amount after one year. Which can be repaid outright with interest.
- There is also a facility to deposit online through an IPPB savings account.