Desk
Share
Everyone's looking for smart ways to save money, right? You want a place where your hard-earned cash is safe, but also earns you a decent return. That's why the Post Office Small Savings Schemes are so popular, and the Post Office Recurring Deposit (RD) is a real favourite.
Imagine turning a regular monthly saving of just ₹5,000 into a substantial fund of over ₹8 lakh! With the Post Office RD, it's possible. Plus, one handy feature is that you can even get a loan against your RD balance if needed.
What's the Interest Rate Like?
The government adjusts the interest rates on these small savings schemes from time to time. For the Post Office RD, the interest rate was set at 6.7% per annum (compounded quarterly) back in late 2023 (specifically for the October-December quarter). Keep in mind that the government reviews these rates every three months, so it's always good to check the latest rate when you're considering investing.
How ₹5,000 a Month Can Grow to Over ₹8 Lakh
It's pretty straightforward to see how your money grows in a Post Office RD. Let's break down that ₹8 lakh example:
Need Funds? Loan Facility Available
Life happens, and sometimes you might need access to funds. The Post Office RD offers a loan facility. Once your account has been active for at least one year and you've made 12 monthly deposits, you can apply for a loan of up to 50% of the balance in your account. Just note that the interest rate on the loan will typically be 2% higher than the RD interest rate.
Getting Started and Other Details
The Post Office RD scheme offers a reliable way to build your savings steadily through disciplined monthly investments.
Read More: Government Data Reveals Mild Uptick In Retail Inflation Driven By Vegetables And Fuel
