Govt-backed savings scheme: Small savings schemes are an ideal investment option for individuals who have a very low risk profile and do not want to go big on putting their money into a particular scheme. Also called post office savings schemes, they have the added advantage of being backed by the government.
Post office or small savings include Sukanya Samriddhi Yojana, Kisan Vikas Patra Account, Public Provident Fund, National Savings Certificates, Senior Citizens Savings Scheme Account, Post Office Savings Account, National Savings Recurring Deposit Scheme, among others.
Govt-Backed Savings Scheme
Individuals who do not wish to take much risk with their money can invest in this government-backed scheme, which can grow a daily investment of Rs 333 to Rs 7 lakh in just 5 years. The scheme in focus is Post Office Recurring Deposit (RD), or National Savings Recurring Deposit Account (RD).
In this small savings scheme, investors can deposit their specific shares on a monthly basis and get a maturity amount after 5 years.
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Post Office RD Calculator
According to the scheme calculator, if an investor puts aside Rs 333 per day or invests Rs 10,000 monthly in Post Office RD scheme for 5 years, their investment would grow to Rs 7,13,659, of which Rs 1,13,659 would be estimated interest earned. The scheme offers an interest rate of 6.7 per cent.
Post Office RD Minimum Investment Amount
5-Year Post Office Recurring Deposit Account (RD) has a minimum investment amount of Rs 100 per month or any amount in multiples of INR 10. There is no maximum limit.
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Post Office RD Account Eligibility
An account in the scheme can be opened by a single adult; joint account (up to 3 adults); a guardian on behalf of minor; a guardian on behalf of person of unsound mind; a minor above 10 years in his own name.
Post Office RD Account Maturity
Maturity will be after 5 years (60 monthly deposits) from the date of opening. Further, the account can be extended for further 5 years by giving application at concerned Post Office. RD account can be retained up to 5 years from the date of maturity without deposit also.
