Post Office RD: Giving a gift to investors, the Central Government has increased the interest rate on the five-year Recurring Deposit scheme by 20 basis points for the October-December quarter of the current financial year. The interest rates of small savings schemes are revised every quarter.
Now the interest rate on 5-year RD has been increased from 6.5 percent to 6.7 percent for the October-December period, which is an increase of 20 basis points. At the same time, except RD, the interest rates of all other schemes have not been changed.
The minimum amount to deposit in post office RD every month is Rs 100. Whereas, Post Office RD matures in 5 years (60 monthly deposits). Apart from this, the account can be extended for further 5 years by applying in the concerned post office. The interest rate applicable during extension will be the same interest rate at which the account was originally opened.
How to get interest of Rs 56,830?
If you keep depositing Rs 5000 every month, then after starting a post office RD, you will have an investment of Rs 60,000 in a year. This will then become a total of Rs 3,00,000 in 5 years. At the end of this period, you will have Rs 56,830 credited as interest.
Overall, when you add the principal and interest earned, you will have Rs 3,56,830 after 5 years. This interest will be available at the rate of 6.7 percent.
