The Post Office offers several small savings schemes that provide safe investment options along with guaranteed returns. Among these, the Recurring Deposit (RD) Scheme is a popular choice for salaried individuals and small investors. By investing a fixed amount every month, you can build a sizable corpus with assured interest.
Safe Investment with Assured Returns
The Post Office Recurring Deposit (RD) scheme is a five-year deposit plan where you deposit a fixed sum every month. The government decides the interest rates, which are revised quarterly. Since it is backed by the Government of India, the scheme is completely safe and risk-free compared to market-linked investments.
How the Scheme Works
In this scheme, you deposit ₹4000 every month for a fixed tenure. At the end of the maturity period, you not only get back your invested money but also receive accumulated interest. The current interest rate is 6.7% per annum (compounded quarterly), making it a lucrative option for conservative investors.
Calculation of ₹4000 Monthly Deposit
If you invest ₹4000 per month for 12 months, the total deposited amount will be ₹48,000. On maturity, including interest, you will get ₹45,459 as returns, which means your money grows with guaranteed benefits.
Post Office RD Scheme Calculation (1 Year Example)
| Monthly Deposit | Tenure | Total Deposit | Interest Rate | Maturity Amount | Total Returns (Profit) |
|---|---|---|---|---|---|
| ₹4000 | 12 Months | ₹48,000 | 6.7% (Quarterly Compounded) | ₹93,459 (Deposit + Interest) | ₹45,459 |
Note: If continued for 5 years, the maturity value will increase significantly due to compounding benefits.
Why You Should Invest
The scheme is ideal for those who want:
- Safe and secure investment without market risks.
- A disciplined way of saving every month.
- Assured and guaranteed returns.
Moreover, the scheme is backed by the government, making it one of the safest saving avenues in India.
Final Thoughts
By depositing just ₹4000 every month, you can accumulate a good corpus with guaranteed earnings. The Post Office RD is a reliable choice for investors who prefer safety over high-risk returns. With this plan, your small monthly savings can turn into a big financial cushion over time.