Saving money is one of the best habits you can develop, and Post Office Recurring Deposit (RD) is a fantastic way to grow your savings securely. Whether you’re a beginner investor, a student, or a salaried professional, investing just ₹100 per day can turn into ₹2 lakh+ in 5 years. Sounds exciting? Let’s break it down in simple terms.
Also Check: Invest ₹1,000 in Post Office PPF & Get ₹8.24 Lakh! Here’s How Long It Takes!
What is a Post Office RD?
A Recurring Deposit (RD) is a savings plan where you invest a fixed amount every month, and the bank or post office pays you interest on it. The Post Office RD is one of the safest investment options available because it’s backed by the Government of India.
How Does the Post Office RD Work?
- You deposit a fixed amount every month (minimum ₹100, no upper limit).
- The post office pays you interest (6.7% per annum, compounded quarterly).
- After 5 years, you get back your total investment plus interest.
By investing ₹100 per day (₹3,000 per month), you can build ₹2,08,101 in 5 years!
Why Choose Post Office RD?
- Safe & Secure: Government-backed scheme, ensuring no risk.
- Guaranteed Returns: No market fluctuations; interest rate is fixed.
- Easy to Start: Open with as little as ₹100/month.
- Loan Facility Available: Borrow up to 50% of the balance in your RD account.
Also Check: Post Office Scheme: Save ₹7,500 and Get ₹12 Lakh! Smart Investment for Huge Returns
Post Office RD Interest Rate & Growth Calculation
Interest Rate Breakdown
The current interest rate is 6.7% per annum (subject to government revision every quarter). This interest is compounded quarterly, which means you earn interest on your interest over time.
Investment Example
If you invest ₹100 per day (₹3,000/month) for 5 years, here’s what your savings will look like:
| Time Period | Total Deposited | Interest Earned | Maturity Amount |
| 1 Year | ₹36,000 | ₹1,225 | ₹37,225 |
| 3 Years | ₹108,000 | ₹20,803 | ₹128,803 |
| 5 Years | ₹180,000 | ₹28,101 | ₹2,08,101 |
How to Open a Post Office RD Account?
Opening an RD account at the post office is simple and hassle-free. Here’s how:
Step-by-Step Guide
- Visit your nearest Post Office with required documents.
- Fill out the RD application form.
- Provide KYC documents (Aadhaar, PAN card, passport-size photo).
- Deposit your first RD installment (minimum ₹100).
- Get your passbook & start saving!
✅ Tip: You can also link your post office savings account for auto-debit RD payments!
Best Strategies to Maximize Your Post Office RD Savings
- Start Early & Stay Consistent: The earlier you start, the more you benefit from compound interest.
- Automate Your Deposits: Set up standing instructions to avoid missing payments.
- Reinvest on Maturity: Roll over your matured RD amount into another RD or fixed deposit for continued growth.
- Use RD for Short-Term Goals: Ideal for buying a vehicle, home renovations, or education expenses.
Also Check: SBI’s 5-Year FD: See How Much You’ll Earn on ₹5 Lakh & ₹10 Lakh—The Returns Will Surprise You!
(FAQs)
1. Can I withdraw my Post Office RD early?
Yes, but only after 3 years with a penalty. You might get a lower interest rate.
2. Can I increase my monthly RD deposit?
No, once the RD starts, you cannot change the monthly deposit amount.
3. What happens if I miss an RD payment?
You’ll have to pay a small penalty of 1% interest for missed deposits. If missed for 4 consecutive months, the account may be closed.
4. Is Post Office RD better than a bank RD?
It depends on your needs. Post Office RD offers higher security, while some banks may offer higher interest rates.
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