Build a Substantial Corpus from Small Savings: Post Office RD Offers Attractive Interest Rates—Start with Just ₹100

Investment Tips: The Post Office RD (Recurring Deposit) scheme is a secure investment option. It currently offers an interest rate of 6.70%. If you are looking to start with a small investment, an RD can be an excellent choice.

RD Scheme: Investors are often on the lookout for investment options where their money remains safe while generating superior returns over time. The Post Office’s Recurring Deposit (RD) scheme can assist you in achieving this goal.

Currently, RDs are offering an annual interest rate of 6.70%. If you are seeking a secure investment that also yields good returns, a Recurring Deposit could be the right option for you. Let’s explore how you can build a substantial financial corpus by starting small.

What is a Recurring Deposit?

A Recurring Deposit is an investment scheme offered by the Post Office wherein you deposit a fixed amount of your savings every month. Your deposited amount matures after a period of 5 years. Currently, the scheme offers an annual return of 6.70% on RDs.

One of the most distinctive features of an RD is that you can start investing with a monthly contribution as low as ₹100. Furthermore, you can avail of a loan against your RD balance; you do not need to prematurely close (break) the RD account to do so. Additionally, the interest rate applicable to such loans is significantly lower compared to personal loans.

How ​​to Avail of the Loan Facility on an RD?

Under the Post Office’s 5-year RD scheme, if you deposit your monthly installments regularly for a continuous period of 12 months, you become eligible to avail of a loan facility. In other words, it is mandatory to maintain your investment for at least one year. Once eligible, you can borrow up to approximately 50% of the total amount accumulated in your RD account.

Benefits of an RD

This Post Office scheme is completely secure, meaning there is absolutely no risk of losing your invested capital. Moreover, you can initiate your investment with a modest monthly contribution of just ₹100. Consequently, even individuals facing budgetary constraints or limited funds can comfortably invest in this scheme. The facility of a loan, coupled with attractive interest rates, also makes an RD special.