If you want to invest a small fixed amount every month and build a large, guaranteed fund in the future, the Post Office Recurring Deposit (RD) scheme is one of the safest and most reliable options. It offers assured returns, zero market risk, and the power of compounding. By depositing ₹15,000 per month, you can accumulate around ₹25 lakh in 10 years at the current RD interest rate of 6.7% per year.
How to build ₹25 lakh by saving ₹15,000 per month?
If you deposit ₹15,000 every month, interest is added every quarter, helping the amount grow rapidly.
• Your total deposit in 5 years = about ₹9 lakh
• With interest, this becomes ≈ ₹10.71 lakh
• If you continue for another 5 years (total 10 years), your investment grows to around ₹25.68 lakh
• Total amount invested over 10 years = ₹18 lakh
• Total wealth created = ₹25.68 lakh
• Total interest earned = ₹7.68 lakh
This happens because RD uses compounding, where interest gets added to your balance regularly, boosting long-term returns.
Why RD gives such good maturity value?
• Interest keeps compounding every three months
• Each monthly deposit earns interest for a different duration
• The longer you stay invested, the more interest you accumulate
That’s why a simple monthly investment turns into a large fund over 10 years.
Why Post Office RD is so popular?
• 100% safe – backed by the Government of India
• Fixed guaranteed returns (no market risk)
• Start with as little as ₹100
• You can extend the account beyond 5 years
• Best for children’s education, marriages, or long-term savings
• Ideal for people who want safe investments instead of stock markets or mutual funds
RD vs Stock Market
Stock markets are volatile, returns fluctuate, and risks are high.
Post Office RD gives:
✔ Fixed return
✔ Guaranteed maturity
✔ No risk
Perfect for conservative investors.
How to open an RD account?
You can open an RD account at any post office. You will need:
• Aadhaar Card
• PAN Card
• Passport-size photograph
You can open:
• Single RD account
• Joint RD account
• Guardian account for minors
Minimum deposit starts at ₹100 per month, and you can increase it as per your financial capacity.
