For salaried middle class Indians looking to invest their money in safe, high-return options, the Post Office has emerged as a popular option. It offers a number of different plans, including the Post Office Recurring Deposit Account, which is a great alternative to bank FDs and RDs because of its high returns.
Any adult or child over the age of 10 can easily open a Post Office RD account. Depositors can increase their contributions by multiples of Rs 10 each month, and the minimum monthly deposit is Rs 100. The interest rate at the Post Office RD is 5.8%. Every quarter, the government sets the interest rates for its small savings programs.
Five years or 60 months from the record’s initial date, whichever starts things out, are expected for it to develop. A year after opening the account, depositors can also withdraw up to 50% of their deposit balance. Furthermore, following one year of opening the record, investors can take a credit of up to 50 percent of the store sum.
The safety and security of both the principal amount and the interest that is generated over time is one of the significant benefits of investing in a Post Office RD. It’s an appealing option for people who want to regularly invest small sums of money because the risk is so low.
At the current interest rate of 5.8%, investors can expect returns of approximately Rs 16 lakh after ten years if they invest Rs 10,000 per month, or approximately Rs 333 per day.
For a ten-year period, the deposit will be Rs 12 lakh, and the expected return will be around Rs 4.26 lakh, giving a return of Rs 16.26 lakh all together. Investors benefit frequently from the quarterly calculation of compound interest.
