By depositing ₹10,000 per month in the Post Office RD scheme, savings of up to ₹7,13,659 can be accumulated in five years. This scheme involves a total deposit of ₹6 lakh and interest of ₹1,13,659. It is a government-guaranteed secure scheme that offers compound interest on a quarterly basis.
Post Office RD scheme: The Post Office has introduced a secure RD scheme with guaranteed returns, where investors can earn up to ₹7 lakh in five years by depositing a fixed amount every month. Under this scheme, depositing ₹10,000 per month will result in a total deposit of ₹6 lakh and an interest of ₹1,13,659. The scheme offers compound interest on a quarterly basis with a government guarantee, and a loan of up to 50% of the deposited amount is also available if needed.
What is the Post Office RD Scheme?
The Post Office RD (Recurring Deposit) scheme is a savings plan where you deposit a fixed amount every month. This scheme is entirely run by the government, so your money remains secure. The interest on the deposited amount in this scheme is added every quarter, i.e., once every three months. Through compounding, your money grows rapidly.
How to Build Savings of ₹7 Lakh in Five Years
The most notable aspect of this scheme is that you can start it with as little as ₹100 per month. However, if you deposit ₹10,000 every month, your total amount can reach up to ₹7,13,659 in five years. This includes your total deposit of ₹6 lakh and a benefit of ₹1,13,659 as interest.
The RD has a tenure of five years, but you can extend it for another five years, making the total investment period ten years.
Interest Rate and the Benefit of Compounding
Currently, for the July to September 2025 quarter, the Post Office RD is offering an annual interest rate of 6.7 percent. This interest is compounded quarterly, which helps your savings grow rapidly. The government reviews the interest rate periodically, so investors can benefit from the new rates on a quarterly basis.
Loan Option
Another advantage of the Post Office RD scheme is that you can also take a loan against the deposited amount if needed. For this, you need to deposit your money for at least one year. After one year, you can take a loan of up to 50 percent of your deposited amount. However, the interest rate on this loan is 2 percent higher than the RD interest rate. This facility can be helpful for investors in case of sudden financial needs.
Benefits of the RD Scheme
The biggest advantage of the RD scheme is that there is no risk involved. Your money is secured by the government. Additionally, your deposited amount grows rapidly due to the compounding interest received at regular intervals. This scheme can be easily started by small investors. Whether you deposit just ₹100 per month or ₹10,000, both options are available to you.
Who Can Benefit?
The Post Office RD scheme is suitable for investors of all ages. Whether you are a student, a young professional, or a post-retirement investor, everyone can make secure savings through it. This scheme is particularly beneficial for those who want to keep their money away from risk.
