Post Office Investment Plan: Turn ₹5,000 into ₹8,54,272—Here’s How
Maximize Your Returns with This Post Office Scheme
For those seeking a secure and high-yield investment, the Post Office Recurring Deposit (RD) scheme presents an excellent opportunity. The government recently increased interest rates for this scheme, making it an even more attractive option. The new rates, applicable for the October-December 2023 quarter, offer an interest rate of 6.7%, which is reviewed quarterly.
Why Choose a Post Office RD?
If you're looking for a low-risk investment with good returns, Post Office savings schemes are a great choice. Among them, the Post Office RD stands out for its steady returns and ease of access. By investing ₹5,000 per month, you can accumulate ₹8.54 lakh over time. Additionally, this scheme offers loan benefits, making it a flexible savings option.
How to Build ₹8 Lakh with a Monthly ₹5,000 Investment
Calculating returns on a Post Office RD is simple. If you invest ₹5,000 monthly, here’s how your savings will grow:
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Over a five-year period, your total deposit will be ₹3,00,000.
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At an interest rate of 6.7%, you will earn ₹56,830 in interest.
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This brings your total amount to ₹3,56,830 in five years.
Now, if you extend your RD for another five years:
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Your total deposit over 10 years will be ₹6,00,000.
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The interest earned at 6.7% will be ₹2,54,272.
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This brings your total maturity amount to ₹8,54,272.
Additional Benefits: Loan Facility
Opening a Post Office RD account is simple and can be done at any nearby post office with a minimum investment of ₹100. The scheme matures in five years, but you can also withdraw early if needed. Moreover, it offers a loan facility—once your RD account is active for a year, you can borrow up to 50% of your deposit. However, the loan interest is typically 2% higher than the RD interest rate.
Final Thoughts
For those looking for a stable and rewarding investment, the Post Office RD is a great choice. By investing consistently and reinvesting wisely, you can turn small savings into a substantial corpus. Consider this scheme if you want to grow your wealth securely over time.