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The Benefits of Investing in Post Office Saving Schemes

Investing in a secure and profitable venture is a goal for many individuals. If you are searching for a safe investment with good returns, then Post Office Saving Schemes might be the perfect choice for you. The Post Office offers several schemes that are popular among people, and one of them is the Post Office Recurring Deposit Plan. This scheme not only guarantees the security of your investment but also provides excellent returns.

Increased Interest Rates by the Government

The Government recently increased the interest rates for the Post Office Saving Schemes. The interest rate for the Post Office Recurring Deposit Scheme has been raised from 6.2% to 6.5% for the July-September quarter. This means that the interest rate for this scheme has been increased by 30 basis points. With this enhancement, investing in this saving scheme is becoming even more beneficial.

Start Investing with Just 100 Rupees

It is noteworthy that the Government revises the interest rates of its saving schemes on a quarterly basis. In the Post Office Recurring Deposit Scheme, you can choose to invest for a period of one year, two years, or even longer. The minimum age required to avail this scheme is 18 years, which means that anyone above this age can invest. You can also open a joint account or open an account in the name of a minor. With a minimum investment of just 100 rupees, you can start your investment in this scheme. Moreover, you can continue investing for a period of 10 years.

Depositing Money for Up to 10 Years

Investing in the Post Office Recurring Deposit Scheme ensures the complete security of your money and offers attractive interest rates. You can deposit a fixed amount every month for a duration of 10 years and accumulate a substantial fund. However, it is important to note that the interest rates of other savings schemes offered by the Post Office are revised every three months. Nevertheless, if the current interest rate remains stable, an investor who deposits 5,000 rupees every month for 10 years will receive a return of 8 lakhs. If the government increases the interest rates, the returns will be even higher.

Complete Calculation of Interest

Considering the calculation, if you deposit a fixed amount of 5,000 rupees every month in a Post Office Recurring Deposit account and continue for the entire 10-year term, the interest earned at the current rate of 6.5% will amount to 2.46 lakhs. Your total investment will be 6 lakhs. Therefore, your total returns after 10 years will be 8.46 lakhs. If the government revises the interest rates during this period, the returns will increase accordingly, resulting in a higher amount in your hands.

Loan Facility for Account Holders

After 3 years of opening a Post Office Recurring Deposit account, you have the option to close it. Additionally, after 1 year of starting the investment, you can avail a loan of up to 50% of the deposited amount. This means that if you have been consistently depositing installments for 12 months, you can apply for a loan based on your account balance. You can borrow up to half of the total deposited amount.