BUSINESS
Post Office Scheme: Save ₹5,000 Monthly and Get Over ₹8 Lakh in 10 Years – Here’s the Full Calculation
If you’re looking for a safe and reliable investment option with steady returns, the Post Office Recurring Deposit (RD) Scheme could be your best bet. With just a ₹5,000 monthly investment, you can build a fund of over ₹8.5 lakh in 10 years—all while enjoying guaranteed returns and added benefits like loan eligibility.
✅ Why Choose Post Office RD?
The Post Office runs several small savings schemes that cater to people of all ages and income levels. Among them, the Recurring Deposit (RD) stands out for those who want to save monthly and earn good returns over time without any risk.
📈 Interest Rate and Tenure
-
Interest Rate: Currently 6.7% per annum (compounded quarterly)
-
Maturity Period: 5 years (can be extended further)
-
Minimum Deposit: ₹100/month
-
Loan Facility: Available after 1 year
Note: Interest rates are reviewed quarterly by the government. The latest rate of 6.7% was last revised on September 29, 2023.
💰 How to Reach ₹8.5 Lakh: Full Breakdown
Let’s say you invest ₹5,000 every month in a Post Office RD:
For 5 Years:
-
Total investment: ₹3,00,000
-
Interest earned at 6.7%: ₹56,830
-
Maturity Amount: ₹3,56,830
If Extended to 10 Years:
-
Total investment: ₹6,00,000
-
Interest earned: ₹2,54,272
-
Total Corpus after 10 years: ₹8,54,272
That’s ₹2.5+ lakh earned just from interest while saving small every month.
🏦 Loan Facility Available
Need funds urgently? You can get a loan of up to 50% of your RD balance after the account has been active for at least 12 months.
-
Loan interest rate: 2% higher than the RD rate (i.e., 8.7%)
-
Pre-closure available after 3 years if needed
✍️ How to Open a Post Office RD Account
-
Visit any nearby Post Office branch
-
Submit ID/address proof and passport-sized photo
-
Start investing with as little as ₹100 per month
📌 Key Benefits at a Glance
| Feature | Details |
|---|---|
| Safety | Backed by Government of India |
| Flexibility | Start with ₹100/month |
| Interest | 6.7% per annum (compounded quarterly) |
| Tenure | 5 years (extendable) |
| Loan Facility | Up to 50% of balance after 1 year |
| Pre-closure | Allowed after 3 years |
| Tax Benefit | No specific exemption under 80C for RD |
🔚 Final Words
If you're looking to save regularly and earn more than traditional savings accounts, the Post Office Recurring Deposit Scheme is a great option. It’s ideal for salaried individuals, small business owners, and anyone who wants to build a large fund without taking high risks.
So why wait? Start saving ₹5,000/month today and secure over ₹8.5 lakh in the next 10 years!
