Post Office Scheme! Invest Rs 10,000, get Rs 16 lakh; Know how

Post Office Scheme:

A risk factor is associated with any investment, including the Post Office schemes. One should invest in a place where your money is safe and you can earn higher returns with less risk. As the equity market is riskier, the returns are higher when compared to other investment products. However, not everyone is capable of taking risks. If one wants to make a good profit with low risk, the post office is a better choice.

Small savings plans from the Post Office may be the best option for you. It also has a low risk factor as well as high returns. Let us tell you about one such investment in which the risk is low and the returns are high. One of these investment options is the Post Office Recurring Deposit (RD) scheme.

How to begin investing in Post Ofiice RD?

Post Office RD Deposit Account is a government-guaranteed scheme for depositing small instalments with higher interest rates, and you can begin investing with as little as Rs 100. There is no maximum investment amount; you may invest as much as you wish.

This scheme’s account is opened for a period of five years. Banks, on the other hand, offer recurring deposit accounts for six months, one year, two years, and three years. Deposit interest is calculated quarterly (at an annual rate) and added to your account (including compound interest) at the end of each quarter.

Know how much interest you will receive

Currently, 5.8 percent interest is available on the Recurring Deposit Scheme; this new rate will be effective on April 1, 2020. Every quarter, the Government of India sets the interest rates for all of its small savings schemes.



:  Rs 10,000 per month  


nterest rate:  5.8% 

Maturity:  10 years 

Maturity amount after 10 years = Rs 16,28,963

Invest Rs 10,000 per month, get Rs 16 lakh

If you invest 10,000 rupees per month in the Post Office RD scheme for ten years, you will receive more than Rs 16 lakh at a rate of 5.8 percent.

Important information about the RD account

You must keep depositing money into the account on a regular basis; if you do not, you must pay a one percent penalty every month. After four missed installments, your account is closed.

Tax on Post Office RD

TDS is deducted on recurring deposits and is taxed at a rate of 10% p.a. if the deposit amount exceeds Rs 40,000. The interest earned on an RD is taxable, but the entire maturity amount is not. Investors with no taxable income can claim TDS exemption by filing Form 15G, just like FDs.


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