Post Office Small Savings Scheme Latest Updates: If you are planning to invest your money in a safe and secure way, then here is the best option for you. Apart from fixed deposit accounts or savings accounts, you can invest your money in the Post Office Savings Scheme, or more specifically the Post Office Recurring Deposit Account Scheme. In this scheme, both your money and the interest earned over time are safe and secure. More importantly, the potential risk in this scheme is relatively negligible. Also Read – Post Office Monthly Income Scheme: Just Deposit Rs.50,000 And Get Rs.3300 Pension. details inside
Post Office Recurring Deposit Account: View Details Also Read – Post Office Savings Scheme: Invest Rs 10,000 every month and get returns of up to Rs 16 lakh on maturity
A government-guaranteed scheme, the Post Office Recurring Deposit Account offers better interest rates. The minimum amount that can be taken to get your investment journey off the ground is as low as Rs 100 and there is no upper limit on the investment. You can invest as much money as you want in this post office recurring deposit account. You can open a Post Office Recurring Deposit Account for a fixed tenure of five years. Also Read – Post Office Savings Scheme: Invest just Rs 1000 in Kisan Vikas Patra and get double returns on maturity. details here
Post Office Recurring Deposit Account: Rate of Interest
The Post Office Recurring Deposit Account offers an attractive interest rate of 5.8 percent. This interest rate was introduced by the government and became effective from April 1, 2020. The compound interest in this scheme is calculated every quarter, making it highly effective as it helps the investors to earn on a consistent basis.
For example, if you invest Rs 10,000 every month at the prevailing interest rate of 5.8 per cent, this amount will give you around Rs 16 lakh in returns in 10 years’ time.
Post Office Recurring Deposit Account: You have to deposit every month
You have to keep one thing in mind that you have to deposit money regularly on monthly basis. If by any chance, you miss a month or miss a payment, you will have to pay a penalty of one percent every month. If you miss four consecutive months, the account will be closed automatically. However, you can still retrieve it within 2 months from the date of default, but if you miss the window, it will be closed permanently.
Post Office Recurring Deposit Account: Withdrawal Limit
The Post Office Recurring Deposit Account Scheme allows applicants to withdraw up to 50 per cent of their deposits after one year of account opening. If the individual opts for the facility of discount on deposits made in advance, they will be faced with a limit of six installments only.