The stock market is experiencing volatility. If you're looking for good interest rates, Post Office small savings schemes are a good option. There's no risk of losing money. Furthermore, they offer high interest rates. This Post Office scheme is quite large, with a fund of ₹25 lakh!
Post Office schemes are zero risk
If you want to invest without any risk, post office schemes are a good option. Even investing a small amount in this government scheme can offer good returns. Furthermore, they are also government guaranteed. Therefore, these schemes are called zero-risk schemes. The Post Office RD scheme is one such option.
You can start with just Rs 100
There's no risk of losing money in the Post Office Recurring Deposit Scheme (PO RD). Investors earn a healthy interest rate of up to 6.7%. An account can be opened with just ₹100. There's no maximum investment limit in this scheme.
The Post Office Recurring Deposit Scheme is effective for depositing large funds and offers many benefits. The Post Office RD scheme offers several benefits. The maturity period for investments is five years. However, investors can close the account before the maturity period. Additionally, the scheme can be extended for another five years. You can open an account at any nearby post office. (Photo: ITG)
Loan facility in Post Office RD
The Post Office Recurring Deposit Scheme also offers a loan against your investment. However, there are rules for this. After one year of investing in the PO RD scheme, and after interest has been credited to the investor's account, you can apply for a loan. Fifty percent of the amount can be withdrawn as a loan, and interest is charged at a rate of only 2 percent.
Save Rs 25 lakh like this
You can save up to ₹25 lakh by investing regularly in this government scheme offered by the Post Office. The calculation for saving a large sum is quite simple.
Using the Post Office RD calculator, you'll need to save ₹15,000 per month. By maturity, or in five years, your total fund will be ₹10,70,492, and your interest income alone will be ₹1,70,492. If you want to increase your monthly investment for five years, you can invest this way for ten years. Your total fund will grow to ₹25,62,822, and you'll earn ₹7,52,822 in interest.
PC: IndiaTV
