Post Office RD Investment: Right now, the stock market is going through continuous ups and downs, which is why many people are looking for safer ways to invest their money. In such a situation, schemes that offer guaranteed and secure returns become the first choice for most investors.
For lower-income, middle-class families and salaried employees, the Post Office Recurring Deposit (RD) is one of the most reliable options. Backed by the Government of India this scheme allows you to invest without any fear or risk. It also helps people save for important goals like a childs education, building a house or creating a long term fund.
Read Also: PM Kisan Yojana 21st Installment: Why ₹2,000 Not Credited Yet? Full Status Check & Update 2025
One of the biggest advantages of the Post Office RD is that you do not need a large amount to start. With just ₹100 per month you can begin your investment & later increase the monthly deposit whenever you are able to. This makes it an ideal plan for both small and big investors.
The Post Office RD gives an annual interest rate of about 6.7%, and the interest is added to your deposit every quarter. Because of this quarterly compounding your savings keep increasing faster and grow steadily with time.
How does it become ₹14 lakh?
If you deposit ₹20,000 every month in a recurring deposit, you will save ₹12,00,000 in five years. Along with the 6.7% compound interest, this amount grows to ₹14,28,727 after five years.
That means your total earnings from interest alone will be ₹2,28,727, helping you build a strong fund of over ₹14 lakh with regular savings.