Are you hesitant to invest in the stock market due to its persistent volatility? Post Office small savings schemes could be an excellent alternative for you. There is no risk of losing your invested capital, as the government itself guarantees its safety. Additionally, the government offers attractive interest rates on these schemes, enabling you to build a substantial corpus through small savings. One such popular scheme is the Post Office Recurring Deposit scheme. Zero-Risk Savings Scheme:
Nowadays, everyone wants to save a portion of their income and invest it in a place where their money remains completely safe while also yielding good returns. In this regard, government-run Post Office schemes are highly beneficial. Whether the investment is small or large, the government itself guarantees the safety of funds in these schemes, making them ‘zero-risk’ options. While there is absolutely no risk of losing money in the Post Office RD scheme, the government offers investors an impressive interest rate of up to 6.7 percent. An account under this recurring deposit scheme can be opened with an initial investment of just ₹100. There is no upper limit on the investment amount; this means you can invest as much as you wish and earn higher returns.
Investment can be extended beyond maturity:
The maturity period for this scheme is set at 5 years, though investors have the option to close the account before maturity. Additionally, the tenure can be extended for another 5 years. You can open this account by visiting your nearest post office. Furthermore, a loan facility is also available under this RD scheme. Investors can apply for a loan against their deposited amount after completing one year of investment in the scheme. The condition is that a loan of up to 50 percent of the deposit amount can be availed, attracting a very low interest rate of just 2 percent.
Also Read… Petrol Price Hike: Petrol becomes costlier by ₹5; diesel prices also rise! Jio-BP suddenly hikes rates.
Here is how to accumulate ₹25 lakh:
By investing regularly in this government Post Office scheme, you can easily build a corpus of up to ₹25 lakh. The calculation for this is very simple. If you invest ₹15,000 per month, your total corpus at maturity—after 5 years—will amount to ₹10,70,492, with interest earnings alone accounting for ₹1,70,492. You would then need to continue this monthly investment for another 5 years. In this scenario, if you sustain the investment for a total of 10 years, your corpus will grow to ₹25,62,822, and the earnings from interest alone will amount to ₹7,52,822.
