Post Office RD Account: The Post Office RD account is a government-backed savings scheme that allows you to deposit a fixed amount every month for five years. This scheme offers a secure investment with guaranteed returns (currently around 6.7% annual interest), making it very beneficial for small investors. You can start with as little as ₹100 and deposit monthly as per your budget.

What is a Post Office RD account?
The Post Office has launched an RD (Recurring Deposit) account for the general public, where you can accumulate substantial wealth over five years by making small monthly deposits. This account is ideal for those who want to save a small amount every month.

How does a Post Office RD account work?
An RD account is opened for five years. You can start with just ₹100 per month and increase the amount according to your income. Post Office RD offers an interest rate of approximately 6.7%. After 5 years, the combined deposit and interest accumulate to form a substantial amount.

Loan Facility on RD Accounts
After one year of opening an RD account, you can take a loan of up to 50% of your deposit. You can repay this loan in installments or in one go. This facility is very helpful in times of need.

Deposit Method in an RD Account
Now there's no need to go to the post office every month to deposit money. You can deposit money through India Post Payments Bank (IPPB) or an authorized agent. After five years, you can extend the term for another five years, which earns even more interest.

Investment Example in RD
If a person deposits ₹3,500 every month, they will receive a total of ₹249,781 after five years. Of this, ₹210,000 is their own deposit, and the remaining amount is interest. This scheme is completely safe and provides significant savings without any risk.

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