Investing in the Post Office Recurring Deposit (RD) scheme is a safe and reliable way to grow your savings over time. If you invest ₹3,500 per month for 5 years, your total returns can be ₹2,48,465 or more, depending on the prevailing interest rate. But how does this work? Let’s break it down in a simple, easy-to-understand guide.
Post Office RD Scheme
| Aspect | Details |
|---|---|
| Investment Amount | ₹3,500 per month |
| Tenure | 5 years (60 months) |
| Interest Rate | 6.7% per annum (compounded quarterly) |
| Total Investment | ₹210,000 |
| Total Interest Earned | ₹124,344 |
| Maturity Amount | ₹334,344 |
| Risk Level | Low (Government-backed) |
| Official Website | India Post |
The Post Office RD Scheme is an excellent choice for risk-averse investors seeking stable returns. By investing ₹3,500 per month, you can accumulate over ₹3.34 lakh in 5 years. This scheme is especially useful for small savers, salaried individuals, and those looking for a disciplined savings approach.
Also Check: Deposit ₹50,000 every year in Post Office’s PPF scheme, how much money will you get after 25 years
What is the Post Office RD Scheme?
The Post Office RD Scheme is a savings plan offered by India Post, where individuals can invest a fixed amount every month for a period of 5 years and earn interest at a fixed rate of 6.7% per annum (subject to change). The scheme is ideal for those who want a risk-free investment option with guaranteed returns.
Benefits of the Post Office RD Scheme
- Guaranteed Returns – Since this is a government-backed scheme, your money is safe.
- Compounded Interest – Interest is compounded quarterly, increasing your earnings over time.
- Affordable Investment – You can start investing with as little as ₹100 per month.
- Flexible Payment Methods – Investors can opt for cash, cheque, or online transfers.
- Loan Facility – You can avail a loan of up to 50% of your RD balance after 12 months.
Post Office RD Scheme: How Much Will You Earn by Investing ₹3,500 Monthly?
Calculation of Returns
If you invest ₹3,500 per month for 5 years, here’s how your earnings will be calculated:
- Total Investment = ₹3,500 × 60 months = ₹210,000
- Interest Earned (6.7% compounded quarterly) = ₹124,344
- Total Maturity Amount = ₹334,344
Also Check: HDFC Bank Personal Loan: यहां से मिलेगा 50,000 से 3 लाख का लोन, आज ही करे अप्लाई
Step-by-Step Guide to Opening a Post Office RD Scheme
Choose Your Preferred Post Office
Visit your nearest Post Office or check their official website for online options.
Fill Out the RD Application Form
You need to provide:
- KYC Documents (Aadhaar, PAN, Voter ID, or Passport)
- Address Proof
- Passport-sized photographs
Deposit the Initial Amount
- Minimum deposit: ₹100
- No upper limit, but deposits should be in multiples of ₹10
- Payment methods: Cash, Cheque, or Online Transfer
Receive Your RD Passbook
The Post Office will provide you with a passbook for tracking your investments.
Start Monthly Deposits
Ensure you deposit your fixed amount every month before the due date.
Post Office RD Scheme: How to Withdraw Your RD Maturity Amount?
Upon completion of 5 years, you can withdraw the full maturity amount.
- Visit the Post Office with your passbook & ID proof.
- Fill out the RD maturity withdrawal form.
- Receive the funds via cash, cheque, or direct bank transfer.
Also Check: Senior Citizen Savings Scheme: ₹1 लाख जमा करने पर 5 साल में कितना रिटर्न मिलेगा? जानें पूरी कैलकुलेशन!
Post Office RD Scheme (FAQs)
Can I withdraw my RD before maturity?
Yes, but only after 3 years. However, premature withdrawals come with a reduced interest rate.
What happens if I miss a monthly deposit?
A penalty of ₹1 per ₹100 deposit will be charged. Ensure timely payments to avoid penalties.
Is TDS deducted on RD interest?
No TDS is deducted by the Post Office, but interest earned is taxable under Income Tax Act, 1961.
Can I extend my RD after 5 years?
Yes, you can extend it for another 5 years with the same interest rate.
