Post Office: Create a fund of Rs 25 lakh through Post Office scheme, here is the complete calculation..

If you want to save a small amount every month and build a substantial corpus in the future, the Post Office Recurring Deposit (RD) scheme could be an excellent option for you. Investments in this scheme are safe, returns are assured, and regular installments can help you build a corpus worth lakhs over the long term. Significantly, by depositing ₹15,000 every month in an RD with an interest rate of 6.7%, you can build a corpus of approximately ₹25 lakh in 10 years.

How will you become ₹25 lakh by depositing ₹15,000?
If you invest ₹15,000 every month, your corpus grows rapidly with an annual interest rate of 6.7%. Your total investment in the first five years is approximately ₹1.71 lakh. After the interest is added, this amount grows to approximately ₹10.71 lakh. If you continue this investment for the next 5 years, or a total of 10 years, your fund reaches approximately ₹25.68 lakh at maturity. Your total investment here is approximately ₹7.68 lakh, while the fund more than triples due to interest.

How do you get such a large return at maturity?
The interest on the amount deposited in an RD is compounded every month, meaning new interest is added to the increasing amount each month. The longer you continue investing, the greater the return. This is why, over 10 years, this scheme accumulates your small investments to create a large fund.

Why is Post Office RD a popular choice?
The Post Office RD scheme has become the preferred choice for investors who want assured returns without any risk. You can open an account with just ₹100 and invest as much as you can. RDs have a lock-in period of 5 years, but this can be extended by another 5 years if needed. This is why many families consider RDs to be the most reliable option for children's education, marriage, or future planning.

A safer option than the stock market
The stock market and mutual funds are constantly fluctuating. Therefore, RDs are ideal for those who are risk-averse, seek fixed returns, and want to build a secure corpus over the long term. RDs are not affected by the market, so both returns and maturity are pre-determined.

How to open an RD account?
Opening an RD account is quite easy. You can open an account by visiting any nearby post office and submitting your Aadhaar card, PAN card, and a passport-size photo. You can also open a joint RD. The first installment can be deposited as little as ₹100, after which you can increase the amount as per your convenience.

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