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Post Office Scheme: Amazing Scheme of Post Office! Put 10 thousand and get 16 lakh rupees; Know all the details

If you invest 10 thousand rupees every month in the post office RD scheme for 10 years, then after 10 years you will get more than 16 lakh rupees at the rate of 5.8%. Know the complete calculation. 

Generally, any investment has a risk factor attached to it. That is, everyone wants them to make a safe investment where their money is secure. Also, get better returns with less risk. As the risk is high in the equity market, the returns are also higher than other investment products. But not everyone has the ability to take risks. In such a situation, if you want an investment where there is profit and there is no risk, post office is better for you. 

If you are also one of those people who do not want to take risk then small savings schemes of the post office can be the best option for you. Let us tell you such an investment in which the risk is negligible and the returns are also good. Post Office Recurring Deposit is one of them an investment avenue.

How to start investing in Post Office RD

Post Office RD Deposit Account is a government-guaranteed scheme to deposit small installments with a better interest rate, in this, you can start investing with a small amount of just Rs 100.

There is no maximum investment limit, you can invest as much money as you want. 

The account for this scheme is opened for five years. However, banks offer the facility of recurring deposit accounts for six months, 1 year, 2 years, 3 years. Interest is calculated every quarter (at an annual rate) on the deposited money and it is added (including compound interest) to your account at the end of every quarter.

Read More: Want to buy a 125cc bike, Here are the best options, know everything from features to price

Know how much interest you will get

At present, the interest of 5.8% is being available on Recurring Deposit Scheme, this new rate is applicable from 1st April 2020. The Government of India fixes the interest rates of all its small savings schemes every quarter. 

If you put 10 thousand every month, you will get 16 lakhs

If you invest 10 thousand rupees every month in the post office RD scheme for 10 years, then after 10 years you will get more than 16 lakh rupees at the rate of 5.8%. 

Rs.10,000 invested every month

Interest 5.8%

Maturity 10 years

Maturity amount after 10 years  = Rs 16,28,963 

Important things about RD account 

You will have to keep depositing money regularly in the account, if you do not deposit the money then you will have to pay a penalty of one percent every month. Your account is closed after 4 installments are missed. 

Tax on Post Office RD

TDS is deducted on investment in recurring deposits, if the deposit exceeds Rs 40,000 then tax is levied at the rate of 10% per annum. Interest earned on RD is also taxable, but the entire maturity amount is not taxed. Investors who do not have any taxable income can claim TDS exemption by filing Form 15G, as is the case with FDs. 

Apart from the post office, government and private banks also offer the facility of recurring deposits.

Bank Recurring Deposit Bank RD Rates Tenure  

Yes Bank 7.00% 12 Months to 33 Months 

HDFC Bank 5.50% 90/120 Months 

Axis Bank 5.50% 5 Years to 10 Years 

SBI Bank 5.40% 5 Years to 10 Years 

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