Turn ₹5,000 monthly into ₹8.5 lakh with this Post office scheme — walk away with ₹2.5 lakh pure interest
New Delhi (The Uttam Hindu): If you want to protect your hard-earned money while also earning a substantial return, the Indian Post Office's small savings schemes could be an excellent option. The Post Office's Recurring Deposit (RD) scheme is gaining widespread attention these days. This scheme is a boon for investors who want to accumulate a fixed amount without any risk. The central government itself guarantees the safety of this investment.
The government is offering a strong interest rate of 6.7%. The most significant advantage of the Post Office RD scheme is its security. It is unaffected by market fluctuations. The government is currently offering investors an attractive interest rate of 6.7% per annum on this scheme. If you invest for a long period, the power of compounding can significantly increase your wealth.
How to make 8 lakh rupees? Understand the complete math. The math for building a large corpus by investing in this scheme is quite simple. If you invest ₹5,000 per month in this scheme, the calculation will be as follows:
In 5 years: The typical maturity period for an RD is 5 years. During this period, you will deposit a total of ₹3 lakh. At an interest rate of 6.7%, you will earn ₹56,830 in interest. This means that after 5 years, you will have ₹356,830.
In 10 years (extension): If you want to get rich, instead of withdrawing after 5 years, extend it for another 5 years. Your total investment in 10 years will be ₹6 lakh. However, here, interest will work its magic, and you will receive ₹254,272 in interest alone. Thus, you will have a total of ₹854,272 at maturity.
Starting at just ₹100 and offering loan facilities, this scheme has been designed with all sections of society in mind. You can open your RD account at any nearby post office with just ₹100. Furthermore, liquidity has been taken into account. If you suddenly need money, you can take a loan of up to 50% of your deposit within one year of account opening. The interest rate on the loan is also quite affordable. Furthermore, if necessary, you can close the account before five years.