Only 10 thousand stop and get 16 lakh rupees in this wonderful post office scheme; Learn how

The risk factor is associated with any investment. In that case, you should invest in a place where your money is safe and you get better returns with less risk. However, due to the high risk in the equity market, the returns are also higher than other investment products. But not everyone has the ability to take risks. In this case, if you want an investment where there is security as well as good profit, then this post office plan is very good for you.

Post office small savings plans may be the best option for you. It also has low risk factor and good returns. So let’s learn about investments that have low risk and good returns.

So this investment plan is a post office recurring deposit. Post Office RD Deposit Account is a government guaranteed scheme for depositing small installments with good interest rates, in which you can start investing with a small amount of just Rs. There is no maximum investment limit, you can put as much money as you want.

The account for this scheme is opened for five years. However, banks offer recurring deposit accounts for six months, 1 year, 2 years, 3 years. The interest is calculated every quarter (annually) on the money deposited in it and it is added to your account (including compound interest) at the end of each quarter.

Find out how much interest you will get
Currently, the recurring deposit scheme is earning 5.8% interest, this new rate will be applicable from 1st April 2020. The Government of India fixes interest rates on all its small savings schemes on a quarterly basis.

If you put 10 thousand every month, you will get 16 lakhs
If you invest Rs 10,000 per month in Post Office RD Scheme for 10 years, after 10 years you will get more than Rs 16 lakh at a rate of 5.8%.

  • An investment of Rs. 10,000 per month
  • Interest 5.8%
  • Maturity 10 years
  • Maturity amount after 10 years = Rs. 16,28,963

Important things about RD account
You will have to deposit money in the account regularly, if you do not deposit money you will have to pay a penalty of one per cent per month. Your account is closed after missing 4 installments.

Tax on Post Office RD
TDS is deducted on investment in recurring deposit, if the deposit is Rs. If it exceeds 40,000, tax is levied at the rate of 10% per annum. Interest earned on RD is also taxable, but the full amount of maturity is not taxable. Investors who have no taxable income can claim TDS exemption by filing Form 15G, as is the case with FDs.

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