The recovering deposit (RD) scheme of the post office is a safe and reliable savings option, which helps you to create a large amount from small monthly investment. If you invest ₹ 25,000 every month in this scheme, then after 5 years not only your deposit increases, but you get a total amount of about ₹ 17.74 lakh. In this, you get 6.5 percent annual interest, which is based on menstrual compounding. Total ₹ 15 lakh will be deposited as initial investment, and you will get additional ₹ 2.74 lakh as interest, which promotes your savings.
The biggest feature of post office RD is that you can deposit monthly from minimum ₹ 100 to maximum limit. You can also open it individually or joint (such as two-three people). The amount can also be deposited by cash or check at its convenience. If the account holder dies, the deposited money gets to his legal heirs, which makes the case easier.
In this scheme, one has to invest on a certain date every month, and if you do not deposit on time, then you have to pay some fine. Despite this, this scheme remains attractive to investors as it has a complete guarantee of the government. After 5 years you can withdraw your deposit or increase it for the next five years, which can increase your savings even more.
There is also the facility of taking loans after 12 monthly installments on your post office RD account. You can get up to 50 percent of your deposited amount as a loan. The repayment of the loan is done with interest, which gives the scheme flexibility.
This scheme is especially suitable for those who want to meet their mature financial goals through regular and secure investment. The widespread presence and reliable process of the post office makes it popular among all the common and special investors of the country. This scheme is a simple and effective way to convert your small savings into strong capital, so that you can reach a better position in five years.