If he invests Rs 10,000 every month in the RD scheme of the post office, he gets a return of Rs 7,10,000 after 5 years.
Post Office Scheme: Post Office runs many savings schemes. Which are considered safe and best option for investment. If you are planning to invest, the post office RD scheme can be useful for you. On July 1, the central government has changed the interest rates on recurring deposits. At present 6.50 percent interest is being received.
This is the calculation
Under the scheme, if an investor invests Rs 10,000 every month, then he gets a return of Rs 7,10,000 after 5 years. Out of which Rs.1,10,000 is towards interest only. Whereas 6,00,000 investors have deposits. The minimum limit to invest in the scheme is Rs 100. Citizens can open their account in multiples of Rs.10. No maximum limit has been prescribed for investment.
Benefits of these features
Investors also get the benefit of many facilities under Recurring Deposit. Investors can also take a loan against their deposits, the loan interest rates would have been 2 percent higher than the interest applicable on the RD account. The loan can be repaid in monthly installments or in lump sum. If a customer fails to repay the loan till maturity, the loan and interest is deducted from his account. The scheme matures in 5 years, but can be extended further for another 5 years.
(Disclaimer: The purpose of this article is only to share information. Discountwalas.com does not provide investment advice in any scheme.)
