Post Office Special Scheme: Are you trying to increase your savings in a trustworthy and safe manner? Perhaps you could consider the Post Office Recurring Deposit (RD) scheme. You deposit a set amount each month into this programme, which functions similarly to a piggy bank, and upon maturity, you receive both your investment and interest. Let us explore how investing Rs 6500 each month might help you make the most out of this unique strategy.
How the Post Office RD Scheme Works
The Post Office RD scheme has a tenure of 5 years. Currently, it offers an attractive interest rate of 6.7%. By investing Rs 6500 every month, you will have invested a total of Rs 3,90,000 over 5 years. With the interest rate of 6.7%, your investment will yield Rs 73,877 as interest over this period. Thus, your total maturity amount will be Rs 4,63,877.
Extending Your RD for Bigger Returns
You can extend the RD for a further five years to optimise your returns. Your total investment will be Rs 7,80,000 if you continue to invest Rs 6500 per month for ten years. You would receive interest of Rs 3,30,554 throughout this prolonged time, making your total maturity amount of Rs 11,10,554.
Application for Extension
You must apply at the relevant post office before the first 5-year term expires if you would like to extend your Post Office RD. Throughout the extension, the interest rate that was in place when your RD was first established will still be in effect.
Withdrawal During Extension Period
If you need to withdraw your funds before the end of the extended period, the rules are as follows:
- If you withdraw after a full number of years (e.g., after 3 years during the extension), you will receive interest at the RD rate of 6.7% for those full years.
- For any period less than a year, the interest rate of the Post Office Savings Account, which is 4%, will apply. For example, if you withdraw after 3 years and 6 months, you will get 6.7% interest for 3 years and 4% for the remaining 6 months.
Achieve Your Savings Goal
You must continue investing Rs 6500 each month for the full five years if your goal is to accumulate around Rs 12 lakh.
Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited or it’s writer never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)
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