Post Office RD scheme: A Post Office Recurring Deposit (PORD) scheme, also known as National Savings Recurring Deposit, is one of the most popular savings alternatives to regular fixed deposits and other long-term plans offered by post offices. This scheme allows investors to save on a regular monthly basis for 5 years. i.e. 60 monthly installments. These deposits earn interest as per the applicable rate compounded quarterly, allowing the money placed to multiply until the maturity date.
Who can open a Post Office RD account:-
– a single adult
– Joint Account (up to 3 adults) (Joint A or Joint B)
– a guardian on behalf of a minor
– a guardian on behalf of a person of unsound mind
– a minor above 10 years in his/her name.
It should be noted that any number of accounts can be opened under this scheme.
Post Office RD interest rate
The current post office RD interest rate is 6.70 per cent per annum.
Post Office RD Tenure
Unlike bank recurring deposits, post office RDs have a defined duration of five years.
Can you extend the RD tenure?
If you wish to continue with the RD account after 5 years, there is an option to extend the RD for a further 5 years, bringing the total duration to 10 years.
Post Office RD: Minimum and maximum deposit
According to the official website of the post office RD, the minimum deposit is Rs 100 per month or any amount in multiples of Rs 10. Whereas there is no limit on the maximum deposit.
How Rs 50 per day investment create over Rs 2,53,485?
If you invest Rs 1,500 per month, then you will invest a total of Rs 90,000 over the years. At a 6.7 per cent interest rate, the interest earned will be Rs 17,050. Adding the two, the maturity amount will be Rs 1,07,050.
Now, if you extend it for an additional 5 years (for a total investment duration of 10 years), the interest will amount to Rs 76,283 and the final corpus will be Rs 2,56,283 after 10 years.
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning.)
