This scheme will make you a 'lakhpati' in just 5 years; understand the full calculation to get rich..

If you wish to save a portion of your monthly salary or earnings and invest it in a secure avenue, the Post Office Recurring Deposit (RD) scheme could be a suitable option. It does not require a large lump-sum investment; instead, you can build a substantial fund over time by depositing a fixed installment each month. The tenure for this scheme is 5 years (60 months). With an annual interest rate of 6.7%, a monthly deposit of ₹6,000 could yield approximately ₹4.28 lakh upon maturity.

A key advantage of this investment is that you do not need to worry about stock market fluctuations. The interest on a Post Office RD is determined by rates set by the government. However, it is advisable to verify the current interest rate and the terms and conditions associated with the account before you begin investing.

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

Understanding the breakdown
A detailed calculation of the amount accumulated after 5 years by depositing ₹6,000 every month in a Post Office RD:

Estimated maturity amount after 5 years: ₹4,28,185
Monthly deposit: ₹6,000
Investment tenure: 60 months
Total amount deposited: ₹3,60,000
Estimated interest: ₹68,185

This calculation is based on an annual interest rate of 6.7% with quarterly compounding. The actual maturity amount may vary according to the applicable rules.
In other words, if you deposit ₹6,000 every month for 5 years, your total contribution will be ₹3.60 lakh. With the addition of approximately ₹68,185 in interest, the total corpus would reach around ₹4.28 lakh.

5 Key Facts About Post Office RD
* Start with a small amount: You can open a Post Office RD account with a minimum deposit of ₹100 per month. * 5-year tenure: The standard investment period for this scheme is 60 months.
* Quarterly compound interest: Interest is calculated on a quarterly basis.
* Loan facility: Once the account has been active for at least 12 months and specific conditions are met, a loan of up to 50% of the deposited amount can be availed.
* Premature closure option: Generally, the account can be closed prematurely after the completion of 3 years. In such cases, the interest earned may be lower, in accordance with the applicable rules.

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