Are you interested in saving money every month at the post office? The post office recurring deposit (RD) scheme offers good interest rates, allowing you to deposit small amounts and withdraw a large sum at maturity. If you deposit Rs.1000 per month, you may wonder how much you’ll get after maturity and what the interest will be.
The central government has introduced various small savings schemes available through post offices or banks to encourage people to save. These schemes cater to individuals’ diverse needs, enabling them to invest small amounts monthly as well as larger sums at once. Many people prefer post office schemes because of the central government’s guarantee and the current attractive interest rates.
To open a recurring deposit account at the post office, you can start investing from a minimum of Rs.100, with the flexibility to deposit as much as you desire. As of the April-June quarter of 2024, the government is offering a 6.7% interest rate, and the maturity period for the RD scheme is 5 years, extendable for another 5 years. There are indications that the interest rates for small saving schemes may increase in the coming quarter, providing extra benefits to investors.
- If you were to deposit Rs.1000 per month, it would cost you approximately Rs.33 per day. Over 5 years, the amount deposited and the interest earned at the current interest rate would yield around Rs.70,000. Therefore, after 5 years, you would receive Rs.71,000.
- If you extend the scheme for another 5 years, with the same monthly deposit, you would have invested Rs.1.20 lakhs over 10 years, earning around Rs.50,000 in interest, resulting in a total of Rs.1.70 lakhs.
- If you withdraw the money after five years, you’ll receive Rs.11,000 in interest. Should you choose to continue for another ten years, the interest will increase to Rs.50,800.
