Post Office Recurring Deposit Calculator: Post Office Recurring Deposit (RD) is a very safe and popular option for investment. Investment can be made in it like SIP. The special thing about this scheme of the postal department is that the investor’s money is not blocked at once in RD. For example, investors get the facility to invest their savings little by little on a monthly basis. At present, the post office is giving interest on RD at the rate of 6.7 percent per annum (quarterly compounded) which is equal to the interest being received on FDs of different tenures of many major banks.
Post Office Recurring Deposit is also a safe investment option like FD, but here the convenience of investment is more. It also gives better returns on deposits. While in FD you have to invest a lump sum amount in any scheme, in RD you invest in different installments on a monthly basis like SIP. In this, interest gets added to your account by compounding on a quarterly basis.
How much can I deposit
In the Post Office Savings recurring deposit scheme, a minimum monthly deposit of Rs 100 is required. After this, any amount can be deposited in multiples of 10. There is no limit to this. The account can be opened through cash or cheque as per the convenience. If the account is opened before the 15th, then the next deposit should be done before the 15th. If the account is opened after the 15th, then the next deposit should be done between the 16th and the last working day of the month.
Also read: LIC MF SIP: LIC introduced 3 schemes 30 years ago, those who deposited only 2000 rupees monthly got 50 to 60 lakh rupees
Maturity rules
The maturity period in Recurring Deposit is 5 years i.e. 5 years from the date of opening the account (60 monthly deposits). This account can be extended for a further period of 5 years by applying to the concerned post office. The interest rate applicable during the account extension will be the same interest rate at which the account was opened. The extended account can be closed at any time during the extension period.
Benefit on deposit of Rs 5,000 every month
Monthly deposit: Rs 5,000
Duration: 5 years
Interest rate: 6.7 percent
Amount on maturity: Rs 3,56,829
Total Investment: Rs 3,00,000
Profit: Rs 56,829
On extending the account for 5 years
Monthly deposit: Rs 5,000
Tenure: 10 years
Interest rate: 6.7 percent
Amount on maturity: Rs 8,54,273
Total Investment: Rs 6,00,000
Profit: Rs 2,54,273
Also read: Mutual Fund: 59% return in 1 year, 31% in 5 years and 20% return in 10 years! This scheme beat the benchmark every time, what is the secret?
Post Office RD: Who can open an RD account
Any Adult Single Account
Joint account (up to 3 adults together)
Guardians by the name of Minor
Any minor above the age of 10 years can register his/her account in his/her own name
