Because they offer higher returns and are backed by the national government, Post Office schemes are one of the safest investment options in the nation, particularly for middle-class customers. A recurring deposit plan is one of the more well-liked post office schemes, and people have found it to be quite helpful.
With merely a Rs. 100 initial deposit, one can invest in this scheme. An effective way to increase savings is through the post office's recurring deposit scheme. Currently, this post office scheme is paying interest at a rate of 5.80%. Since the first of April 2020, this interest rate has been in effect. Every three months, the central government sets the interest rates for its savings schemes. People can choose to take part in the post office recurrent deposit plan for a period of one year, two years, or even longer, depending on their convenience.
What are the investment criteria and loan features?
Anyone who is at least 18 years old can sign up for this savings scheme with only a few clicks. Parents can also open accounts for their minor children. Users could become eligible for a loan using this scheme as well.
People can get a loan from banks using this as security if they open an account under this plan and deposit 12 installments. In accordance with this arrangement, they are also allowed to borrow up to 50% of their total deposit.
Interest:
People who invest in this post office scheme will receive interest payments every three months. The interest and compound interest are credited to your account at the end of each quarter. You must visit the closest post office branch in order to open an account under this plan.
Anyone can make a sizable amount of money themselves if they put money in this scheme for an extended period of time. For instance, if you deposited Rs. 10,000 every month for ten years in the recurring deposit plan, you would have received Rs. 16 lakh. Your investment will be Rs 1,20,000 if you pay Rs 10,000 every month for a year.
It will cost roughly Rs 12,000,00,000 to invest in this plan because you selected a duration of 10 years. After that, when the scheme matures, you would receive a return of Rs. 4,26,476. In this case, you will receive Rs 16,26,476 overall after 10 years.
