A powerful scheme from the Post Office: Here's how you can get a benefit of Rs. 10.70 lakh; here's the complete calculation..

When it comes to growing your money safely and reliably, most people opt for bank FDs or Post Office schemes. Bank FDs are well-known, but Post Office schemes are also very beneficial, especially for small investors. Your money remains safe in these schemes, and the returns are fixed. If you want to invest small amounts regularly, the Post Office Recurring Deposit (RD) scheme can be an excellent option for you.

What is the Post Office RD Scheme?
In the Post Office RD scheme, investors deposit an amount every month according to their convenience. The biggest advantage of this scheme is that your money is safe, and the interest rate is fixed. Currently, the Post Office RD scheme offers an interest rate of 6.7 percent.

The maturity period of this scheme is 5 years. This means that after 5 years, you can receive a lump sum amount including your deposited amount and interest. You can start investing with as little as Rs. 100 per month. There is no maximum limit for investment in this scheme, so you can invest as much as you are comfortable with.

How to build a fund of Rs. 10.70 lakh through monthly investments?
If you want your fund to reach Rs. 10.70 lakh in 5 years, you will need to invest Rs. 15,000 every month in the RD scheme. Continuing this investment for 5 years will result in a total deposit of approximately Rs. 9 lakh. The interest earned during this period will be approximately Rs. 1.70 lakh.

In this way, a large fund can be created over time with small investments. This method of the RD scheme is ideal for those who are saving every month and want to gradually increase their savings.

Advantages of the RD Scheme
This scheme has several advantages. Your money is safe, you get a fixed interest rate on your monthly deposits, and you can start with a small investment. By investing in this scheme, you can generate good returns in the long run. The Post Office RD scheme is best suited for those who want to convert small savings into regular investments and build a substantial fund over the long term.

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