If you want to keep your hard-earned money safe and get good returns, then the Post Office Recurring Deposit (RD) Scheme could be the best option for you. Especially for the middle-class families, it works like a ‘piggy bank’, where you can start investing from just Rs 100. The Post Office 5-year RD Scheme is a government small savings scheme. In this, you have to deposit a certain amount of money every month. After 5 years, your deposit will mature with interest.
Investment limit: You can start investing from as little as Rs 100 per month. There is no limit on the maximum investment.
Attractive interest: Currently, the interest rate on Post Office RD is 6.70% per annum.
Guaranteed security: Since it is a government scheme, there is no fear of losing money in it.
Loan facility: You can take a loan on it without closing the RD account.
How to get loan facility?
The Post Office RD scheme also provides loan facilities to investors when needed. If you have deposited installments continuously for 12 months or a year, then you will be considered eligible for the loan. You can borrow up to 50 percent of the total amount deposited in your account. The interest rate on this loan is much lower than that of a personal loan. If you deposit Rs 5,000 every month, then your total deposit will be Rs 3 lakh in 5 years. At the current interest rate of 6.7%, after 5 years you will get a return of about Rs 3,56,830. That is, you will get a profit of about Rs 56,830 in interest alone. Post Office RD is a good way to get safe and assured returns amidst market volatility. You can easily open this account by going to the nearest post office with your Aadhaar card and photo.
