Post Office RD : If you are planning to invest in government savings schemes then Small Saving Scheme is a very good option. The government is running many small savings schemes through post offices.
Guaranteed returns are available in these schemes. If you do not have a large amount to invest at once, then you can also invest monthly savings every month. Yes, you can invest a fixed amount every month in Post Office Recurring Deposit. The government had recently revised the interest rates on post office RD. From October 1, 2023 to December 31, 2023, 5 year post office RD is getting 6.7 percent annual interest instead of 6.5 percent.
You will get interest on investing Rs 5,000 on RD
In an RD of Rs 5,000 every month, you will invest Rs 60,000 in one year and a total of Rs 3,00,000 in five years. You will get Rs 56,830 as interest at the rate of 6.7 percent after 5 years. You will get Rs 3,56,830 on maturity. If you invest Rs 3,000 in RD every month, you will invest Rs 36,000 in a year. Your total investment in 5 years will be Rs 1,80,000. According to the post office RD calculator, according to the new interest rates, you will get Rs 34,097 as interest. You will get a total of Rs 2,14,097 on maturity.
Post office savings scheme changes every three months
TDS is deducted on the interest received on RD. TDS of 10% is applicable on the interest rates received on RD. If the one month interest on RD is more than Rs 10,000 then TDS will be deducted. The Finance Ministry of the Central Government reviews the interest available on small savings schemes every three months.
This time in the festive season quarter of October to December, the government has changed the interest rates only on 5 year recurring deposits. On the remaining schemes, interest rates have been applied at the old rate.
