Post Office Small Saving Scheme Latest Update: If you are planning to invest your money in a safe and secure way, here is a best option for you. Apart from Fixed Deposit accounts or Savings accounts, you can invest your money in Post Office Savings Scheme, or more specifically, the Post Office Recurring Deposit Account scheme. In this scheme, both your money and the interest you garner over time are safe and secure. More importantly, the potential risk in this scheme is relatively negligible.
Post Office Recurring Deposit Account: Check details
A government-guaranteed scheme, the Post Office Recurring Deposit Account offers better interest rates. A minimal amount can be as low as Rs 100 to get your investment journey off the ground and the upside is there is no upper limit on investment. You can invest as much money as you want in this Post Office Recurring Deposit Account. You can open the Post Office Recurring Deposit account for a fixed term of five years.
Post Office Recurring Deposit Account: Interest Rate
The Post Office Recurring Deposit Account offers an enticing interest rate of 5.8 per cent. This interest rate was rolled out by the government and made effective from April 1, 2020. The compound interest in this scheme is calculated every quarter, making it highly effective as it helps investors generate earnings on a frequent basis.
For example, if you invest Rs 10,000 every month at the current interest rate of 5.8 per cent, then in 10 years’ time that amount would compound to give you around Rs 16 lakh in returns.
Post Office Recurring Deposit Account: You must deposit every month
One thing you have to keep in mind is that you need to regularly deposit money on a monthly basis. If by some chance, you skip a month or miss a payment, then you have to pay a penalty of one per cent every month. In case, you miss for four months in a row, then the account will be closed automatically. However, you can still retrieve it within 2 months from the date of default, but if you miss the window, it will be permanently closed.
Post Office Recurring Deposit Account: Withdrawal limit
The Post Office Recurring Deposit Account scheme allows applicants to withdraw up to 50 per cent of their deposit balance a year after the account is opened. In the case that the individual opts for the rebate facility on the deposits given in advance, they will face a limit of six instalments only.
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