Post Office RD Scheme: If you are planning good savings along with safe investments, then Post Office’s RD (Recurring Deposit) scheme can prove to be a great option for you. This scheme is specially designed for those who want to create a strong fund for the future by depositing a fixed amount every month.

What is Post Office RD Scheme?

Post Office Recurring Deposit Scheme is a small savings scheme run by the Government of India, in which investors are required to deposit a fixed amount every month for a period of 5 years. On maturity, a lump sum amount is received along with interest on the invested amount.

Interest rates and investment facilities

At present, the interest rate fixed by the government is applicable on Post Office RD, which is revised on quarterly basis. In this, you get the benefit of compound interest, due to which your money keeps increasing over time. You can start investing with just ₹100 per month and thereafter open an account with any amount in multiples of ₹10.

Beneficial for whom?

This scheme is very useful for employed people, housewives, small businessmen and students. For those who want to keep their savings safe without risk, Post Office RD is a reliable option.

Tax and loan facilities

There is no direct tax exemption on investing in Post Office RD, but the amount deposited in it is completely safe. If needed, the facility of loan or partial withdrawal is also available against the account, so that you can withdraw money in case of emergency.

How to open an account?

You can open a Post Office RD account by going to your nearest post office. For this, Aadhar card, PAN card and passport size photo are required. Customers with online facility can also open an account through India Post Payments Bank.

Why is this a better option?

Post Office RD is one of those investment schemes in which investment is completely safe, because it is backed by the Government of India. It is not affected by market fluctuations and gives fixed returns.

If you want a systematic and secure investment for the future, then Post Office RD Scheme is a great scheme for you. It is an easy and reliable way to convert small savings into big funds.