Post Office RD Scheme: If you want to save or invest some money by cutting down on your monthly income, then investing in post office schemes can prove to be a better option for you.
Recurring Deposit (RD) is a very popular scheme among the savings schemes of the post office, in which bumper returns can be obtained by depositing money on a monthly basis. People are given strong interest on investing in this scheme. Investing in it is very easy, safe and reliable. The special thing is that if you invest in the stock market or schemes of any other financial companies, then the chances of your money sinking are high. On the other hand, if you invest money in this scheme of the post office, then the chances of sinking are less. Let us know about the Post Office Recurring Deposit Scheme.
How much interest do you get
If you want to invest in RD of Post Office Schemes , then you should also get information about the interest you get on investing in it. The central government has currently increased the interest rate on investing in the Post Office Recurring Deposit Scheme. After investing in this scheme, the investor is paid interest at the rate of 6.7 percent. Along with this, depositing a fixed amount in this scheme gives excellent returns on the maturity date.
How much return will you get on an investment of Rs 3000
Now if you deposit Rs 3000 every month in the post office RD scheme for 5 years, then during these 5 years, about Rs 1,80,000 will be deposited in your account. Now if interest is paid on this deposit at the rate of 6.7 percent, then the interest amount will be Rs 34,097. This means that if you deposit Rs 3000 every month for 5 years, then on the maturity date you will get a total of Rs 2,14,097.
How to calculate interest rate
According to Policybazaar.com, if someone deposits Rs 7000 every month in the Post Office RD scheme for 5 years, then his total deposit amount will be Rs 4,20,000. Now he will get interest of about Rs 77,400 on this deposit at the rate of 6.7 percent in 5 years. After this, about Rs 4,97,400 will be paid on the maturity date. The formula given below is used to calculate the interest rate.
- Monthly deposit, R = Rs. 7,000
- Tenure of RD = 5 years
- Total number of quarters in the tenure, n = 5 years X 4 quarters
- = 20 years
- Interest rate at the time of joining RD = 6.7% p.a.
- Therefore, i = 6.7/400 = 0.01675
So, the maturity amount at the end of 5 year tenure will be:
- M = R x [(1 + i) x n – 1] / 1 – (1 + i) (-1 / 3)
- Maturity amount = 7,000 x [(1 + 20) x 20 – 1] / 1 – (1 + 0.01675) (-1/3)
- Maturity amount = Rs. 4,97,400
