Post Office scheme turns small savings into wealth: ₹5,000 monthly can make you a millionaire
New Delhi (The Uttam Hindu): If you're looking to build a large fund for the future but fear market fluctuations, the Post Office Recurring Deposit (RD) scheme could be an excellent option. By making a small monthly deposit under this government scheme, you can accumulate lakhs of rupees in just a few years. Most importantly, your investment is guaranteed 100% security by the government, meaning there's no risk of your money being lost.
8.36 lakh rupees will be made in 5000 months to 10 years: This can be illustrated with a simple example. At the current annual interest rate of 6.7% (which may be changed by the government from time to time), if you invest ₹5,000 per month in a Post Office RD scheme, your total investment will be ₹3 lakh after 5 years. You will earn approximately ₹55,771 in interest giving you a total of ₹355,771 at maturity.
At the same time, if you extend this scheme for another 5 years, then in 10 years your total investment will become Rs 6 lakh on which interest of about Rs 2,36,666 will be earned and you will have a huge fund of Rs 8,36,666.
Special scheme for the common man: This Post Office scheme is designed for all age groups. You can start investing with just ₹100 per month. There is no upper investment limit; you can deposit any amount according to your savings capacity.
Complete security with government guarantee: Market-linked schemes always carry risks, but with this post office scheme, every penny is completely safe. This plan comes with a sovereign guarantee from the government. Banks only offer insurance guarantees for deposits up to ₹5 lakh, whereas here, your entire deposit is considered safe.
Other major features of the scheme: This scheme offers investors a wide range of features and flexibility, from funding needs to account management. If you need immediate funds while investing, don't worry, as you can avail a loan of up to 50% of your deposit amount after 12 installments.
Furthermore, there's no need to visit the post office every month; you can deposit your monthly installment online from the comfort of your home through your India Post Payments Bank (IPPB) account. Furthermore, this plan allows you to open a joint account with another member and transfer the account between post offices if needed.