Post Office RD: Post Office National Savings Recurring Deposit Account (RD) can be invested every month. It is also known as Five Year Post Office Recurring Deposit Account. In which the interest rate will increase as per the decision of the government. The interest rate changes every quarter. According to the India Post website, the interest rate applicable to the Post Office Recurring Deposit Account for the quarter ending June 30, 2024 is 6.7 percent per annum.
Do you want a government backed..fixed income scheme? Want complete security over your money? But this is the right plan for you. The scheme is administered by India Post. The name of the scheme is Post Office Recurring Deposit(RD) Scheme. The scheme pays interest at 6.7 per cent per annum for the quarter ending June 30, 2024. The scheme allows for premature withdrawal after the first three years. Originally the scheme had a maturity of five years. Rs. 100 to Rs. Allows monthly investments in multiples of 10. In this small savings scheme your monthly investment is Rs. 5,000 to Rs. Now let’s know with examples how much your income will be if it is up to 20,000..
This is the scheme..
Post Office National Savings Recurring Deposit Account (RD) can be invested every month. It is also known as Five Year Post Office Recurring Deposit Account. In which the interest rate will increase as per the decision of the government. The interest rate changes every quarter. As per the India Post website, for the quarter ending June 30, 2024, the interest rate applicable to Post Office Recurring Deposit Account is 6.7 per cent per annum.
How does it work?
According to the Post Office website, here are three important things to know about the Post Office RD scheme:
Investment Limit: Minimum per month Rs. An account can be set up with an investment of 100. No maximum limit of Rs. Any amount can be set up in multiples of 10.
How to open an account: A post office can open an RD account after paying the initial amount in the form of cash or cheque. Subsequent deposits are to be made by 15th of each month if the last working day of the second month is open in the first fortnight or on the 16th day.
Maturity Period/Premature Withdrawal: Corpus built up in RD account can be withdrawn early after completion of three years from the date of opening by submitting the prescribed application form at the concerned post office branch. However, if the depositor exercises the early withdrawal option, the interest rate applicable to the Post Office Savings Account will be applicable to the corpus. RD can be continued for another five years after maturity.
What is the total income?
Every month Rs. 5000 invested and if you want to withdraw in the third year your total corpus is Rs. Rs.67,492 and Rs.70,192 if withdrawn at the end of the fourth year. By the end of the same fifth year i.e. if kept till full maturity, it will be Rs.3,56,829.
Every month Rs. 12,000 if you invest and withdraw at the end of the third year, you will get Rs.1,61,980 and if you withdraw at the end of the fourth year, you will get Rs.1,68,460. At the same time, by the end of the fifth year i.e. if you keep it till the full maturity time, you will get an income of Rs.8,56,390.
Every month Rs. If you make RD 20,000 and withdraw by the end of the third year, your total corpus will be Rs.2,69,967 and if you withdraw by the end of the fourth year, it will be Rs.2,80,766. At the same time, by the end of the fifth year i.e. if kept till the full maturity time, the income will be Rs.14,27,317.
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