If you are looking for a savings plan that helps you invest small amounts every month and gradually build a large fund, the Post Office Recurring Deposit (RD) Scheme can be a perfect choice. This scheme offers guaranteed returns with low risk, making it highly suitable for disciplined savers. Backed by the Government of India, it is secure, reliable, and comes with attractive interest rates.
What is the Post Office RD Scheme?
The Post Office RD Scheme is a regular savings plan where a fixed amount is deposited every month for five years. At maturity, the depositor receives the total investment along with the interest earned. Since this scheme is operated by the Government of India, it is considered extremely safe. Any Indian citizen can open this account at their nearest post office.
Current Rate of Interest
At present, the Post Office RD Scheme offers an annual interest rate of 6.7 percent. The rate is reviewed by the government every quarter, ensuring stability and transparency for investors. For those with long-term goals, this plan provides a safe and attractive option.
How Much Can You Earn by Saving Monthly?
Investing a fixed amount every month can create a significant maturity amount over time. For example, if you invest ₹26,000 every month, in five years you will receive around ₹18.55 lakh at maturity. The calculation includes both your savings and the interest earned.
Here is an example of how different monthly deposits grow over five years:
| Monthly Deposit | Total Investment (5 Years) | Interest Earned | Maturity Amount |
|---|---|---|---|
| ₹10,000 | ₹6,00,000 | ₹1,13,659 | ₹7,13,659 |
| ₹20,000 | ₹12,00,000 | ₹2,27,315 | ₹14,27,315 |
| ₹25,000 | ₹15,00,000 | ₹2,84,148 | ₹17,84,148 |
| ₹26,000 | ₹15,60,000 | ₹2,95,515 | ₹18,55,515 |
This makes the RD scheme ideal for salaried employees, small traders, and individuals with a stable monthly income. By saving regularly, one can easily prepare for future financial goals like children’s education, marriage, or even buying a house.
How to Open a Post Office RD Account
Opening a Post Office RD account is very simple. You need to provide basic documents such as Aadhaar card, passport-size photo, and address proof. The account can be opened at any post office across India.
With the help of India Post Payments Bank (IPPB), investors also have the option of opening and managing their RD account online. Payments can be made through cash, cheque, or auto-debit facility.
Who Can Open This Account?
Any Indian citizen above 18 years of age can open an RD account. Parents can also open an account in the name of their minor children. The account can be opened individually or jointly with another person. This makes it equally beneficial for both rural and urban investors.
Conclusion
The Post Office RD Scheme is one of the most reliable savings options in India. With a fixed monthly deposit, investors can build a large and risk-free fund over five years. For those saving around ₹26,000 per month, the scheme can return more than ₹18 lakh at maturity. Its government backing, assured returns, and simple process make it a safe and effective way to grow savings.
Disclaimer: The information provided in this article is based on publicly available sources and current interest rates. Returns may vary as rates are reviewed quarterly. Please consult your nearest post office or a certified financial advisor before making any investment decision.
