Post Office Scheme: Invest ₹6,000 monthly in this Post Office scheme; get this much (in lakhs) after 5 years..

Post Office RD Scheme: If you wish to save a fixed amount every month while avoiding the volatility, downturns, and risks associated with the stock market, the Post Office Recurring Deposit (RD) scheme can prove to be an excellent and safe option for you. This government savings scheme does not require a large lump-sum investment; instead, you can build a substantial fund for the future by depositing small installments each month.

What makes the Post Office RD scheme special?

Safe and Guaranteed Returns: This scheme is backed by the Central Government; therefore, your money remains 100% safe and is unaffected by market risks.

Flexible Investment Limits: An account can be opened with a minimum deposit of ₹100 per month. There is no upper limit on the investment amount.

Fixed Tenure: The official tenure of the Post Office RD scheme is 5 years (60 months).

Attractive Interest Rate: Currently, the scheme offers an annual interest rate of 6.7% (compounded quarterly).

How much will you get by depositing ₹6,000 per month?

Suppose you save ₹6,000 every month from your earnings or salary and deposit it into the Post Office RD scheme. Here is the complete breakdown of your maturity amount upon the completion of 5 years:

Monthly installment: ₹6,000
Investment tenure: 5 years (60 months)
Total invested capital: ₹3,60,000
Estimated interest income (6.7%): ₹68,185 (approximately ₹68,000)
Total amount receivable at maturity: ₹4,28,185 (approximately ₹4.28 lakh)
(Note: This is an estimated calculation based on the applicable interest rate of 6.7%. Minor variations in the final amount are possible depending on the interest rates applicable at the time of maturity and official Post Office rules.)

Please note these important rules before investing:

Mandatory timely installment payment: Installments for the RD must be deposited by the due date each month. Payment delays may attract a penalty or fine as per the rules.

Premature withdrawal: If you urgently need funds before the tenure ends, the account can be closed after the completion of 3 years; however, this may affect the interest rate.

Tax rules: Interest earned on a Post Office RD is not entirely tax-free. Tax may be payable on the interest income in accordance with applicable income tax regulations.

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