Saving money has become more important than ever. Even systematic small savings can give good returns later. Today We will discuss about Post Office Recurring Deposit Scheme which can be a good option if you want to start with small savings. You need to deposit a little every month and earn up to 6.7% rate of interest. This can get you a good return in one or two years.
Post Office Small Savings RD Scheme
India Post offers a Recurring Deposit or RD scheme for everyone. This is one of the safest modes of investment, as you invest every month and very little there is no pressure. Even you can sometimes skip payment and later pay for multiple months. There is no fine for this. This scheme is also backed by RBI and government so there is no risk of loosing the money.
In this scheme, you can choose to deposit any amount according to your convenience. You can start with even Rs 100 or Rs 5000, its completely up to you. This allows every person to start saving for big future expenses.
RD Returns Calculation
If you plan for RD with Rs 1000 to any amount you like. After 5 years it will give a good amount in returns. For example, if you invest Rs 1000 every month for 5 years then your total investment will be 1000 X 60 = 60,000. This will give you a return of Rs 71,369 after 5 Years. For the same time if you invest Rs 3000 then you can get Rs 2,14,097 by investing Rs 1,80,000 only.
There are many more investment options available in Post Office. If you have a good amount of money then you can choose to invest it in Fixed Deposit Scheme as well. For example, if you have Rs 1,80,000 and you choose to make a FD for 5 years at 7% interest rate it will return Rs 2,54,660 after 5 years.