Invest Rs 10,000 And Get Returns Up To Rs 16 Lakh From This Govt Scheme, Check Details

If you don’t intend to take bets when it relates to financial matters, the safer investment for you is post office schemes. In several other strategies proposed by the Post Office, smaller investments earn higher returns. The Post Office Recurring Deposit small saving scheme is one such mechanism that lets you get better returns. Not only is this scheme safe, but you can also earn huge by spending as little as Rs 100 per month. However, the deposit that can be allocated does not have a maximum ceiling. The RD Account of the Post Office is a government-backed scheme that allows you for parking a small amount of surplus and fetches a higher interest rate against the deposit.

What is the current offer on-demand?

For a period of 5 years, you can open an RD account at any post office. Interest is determined on the deposits per quarter (at the yearly rate). That is then credited at the end of every year to the account with compound interest. As per the portal of the India Post Office, 5.8 percent interest is currently paid on the RD scheme. This current rate is effective as of 1 July 2020. In all its small saving schemes, the central government has declared interest rates per quarter.

How to get Rs 16 Lakh by investing just Rs 10,000?

If you park Rs 10,000 per month for 10 years in the post office’s RD scheme, then you will fetch Rs 16.28 lakh upon maturity. The thing to remember is that you will have to pay a fine if you do not deposit the RD instalment on time. You will have to pay a penalty of one percent per month if the instalment is overdue. With this, your account will be locked if you do not deposit four consecutive instalments. However, it can be triggered again for the next two months once the account is locked.

Things to be considered about Post Office RD Scheme

The Post Office RD has both a single account and a joint account facility. There will be a limit of three adults with a joint account. Minor above the age of 10 can also be able to open an account under the supervision of his or her guardian or legal heirs. RD’s maturity is five years, but you can extend it for the next 5-5 years by applying prior to the maturity period. At least Rs 100 per month can be deposited into the RD account and the maximum balance can be multiplied by 10. At the time of the account opening, a nomination facility is also available. A premature withdrawal facility is allowed only after 3 years of completion of the account from the date of issuance. On a quarterly basis, interest rates are updated and also you can transfer your RD account from one person to another and one palace to another as well. The penalty ranges from Rs 1 to Rs 100 and is charged only one time in case of failure of making deposits into the account. And after completion of 1 year of the account, you can also avail a loan facility up to 50 per cent of the deposit. A facility for online submission via an IPPB saving account is also open for the investors.

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