Post Office RD Scheme Details; Interest Rate

If you have a lot of funds at once, you can make a fixed deposit (FD) or invest the lump sum in mutual funds. But if you do not have that much fund at once and only a little savings are possible every month, then what will you have to do to save and create a big fund. Post office savings schemes are quite reliable and useful for such people.

Being a government scheme, investing in them is easy and safe. The special thing is that there is no need to invest a huge amount in it. By investing regularly in Post Office Recurring Deposit (RD) Scheme, you get guaranteed returns with fixed interest.

today we your money We will talk about this scheme of the post office in the column. You will also learn that-

Question- What is the RD scheme of the post office?

answer- Post Office Recurring Deposit (RD) Scheme is a government savings scheme. In this, a fixed amount has to be invested every month. This scheme has been specially designed for regular savers, in which the interest rate is fixed and the money remains completely safe.

Currently, post office RD is getting 6.7% annual interest, which is calculated every three months. The interest received on this is compounded, that is, interest is added on the interest, due to which the returns become even better.

Question- What are the benefits of Post Office RD Scheme?

Answer – Post Office’s RD scheme is a safe investment option, in which small savings can create a big fund. In this, government guarantee is available, fixed interest is available and a habit of regular investment every month is also formed. See all its benefits in graphic-

Question- If you want to create a fund of Rs 7 lakh in 5 years, then how much will have to be invested?

answer- If you save only Rs 340 daily and invest it in Post Office RD Scheme, then your total deposit amount in 5 years will be Rs 6 lakh. Investing Rs 340 daily means Rs 10,000 per month.

You will get interest of around Rs 1 lakh on this with 6.7% compound interest. That means, after completion of 5 years, you can get a return of around Rs 7 lakh. This formula is perfect for those who want to build a big fund in a fixed time by saving a little in a month.

Question- How to invest in Post Office RD Scheme?

answer- You can start recurring deposits by opening an account directly in the post office. If you want, you can open an account online also. Let us understand it step-by-step through graphic.

Question- If money is needed in between, can a loan be taken against it?

answer- If you need money, you can take a loan against post office RD. The condition for this is that at least 12 installments have been deposited in your RD account. Loan can be availed up to 50% of the amount deposited in the account. However, 2% more interest has to be paid on the loan.

For example, if 6.7% interest is being given on RD, then 8.7% interest will have to be paid on the loan taken against it i.e. 2% more interest will be charged.

You can repay the loan in installments before maturity or in one go. If the loan is not repaid on time, the loan amount will first be deducted from the maturity amount and then the remaining money will be received along with interest.

Question- Is Post Office Saving Scheme more beneficial than bank schemes?

answer- This cannot be compared. The schemes of both bank and post office have their own benefits. Post Office Saving Schemes are easy and convenient for these three reasons –

Question- For whom is the Post Office RD Scheme beneficial?

answer- This scheme is more beneficial for these people –

Question- Who can take advantage of the Post Office RD Scheme?

answer- Everyone can take advantage of this. There is no need for any special category for this. Whether you are a student, employed or have your own business, anyone can invest in it.

The special thing is that there is no age limit in this. This means children, youth or senior citizens can all avail the benefits of secure savings and interest. You can gradually increase your fund by depositing regular small installments in RD scheme.

Question: For how many years does the Post Office RD Scheme last?

answer- Post Office RD Scheme lasts for 5 years. In this you deposit small amounts every month. After 5 years, both your deposit and interest together become the maturity amount. There is also an option to prematurely close the scheme if needed.

Question- What documents are required to open an account in the post office?

answer- Three types of documents are required to open a post office account. Through these you can open your account online or offline.

If you want to add a nominee, then identity and date of birth proof of the nominee is also required.

Common questions and answers related to post office RD

Question – What is the minimum deposit amount of Post Office RD?

answer- The minimum deposit amount of Post Office RD is Rs 100.

Question – What will happen if a post office is not able to pay the RD installment on time?

answer- If you are not able to pay the RD installment by the due date of the month, then that month will be considered as default. Whatever month you do not pay the installment on time, that month will be considered as default. A penalty of Re 1 will be imposed for every Rs 100 default.

Question – Can loan also be taken against post office RD?

answer- Yes, loan against RD can be taken after depositing 12 installments and keeping your account active for one year. You can take loan up to 50% of the amount deposited in the account. But interest has to be paid on the loan.

Question – Can the period of post office RD be extended?

answer- Yes, the period of Post Office RD can be extended up to 5 years.

Question – How is the interest received on RD calculated?

answer- Compound interest on RD is calculated every three months.

Question – Is post office RD tax free?

answer- Yes, exemption is available under 80C.

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