Post Office Scheme: Invest Rs 10,000 to become a millionaire; This way

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New Delhi: If you want to become a millionaire overnight then this information is only for you. Any investment, in general, comes with some level of risk. By investing in post office schemes, you can get better returns with less risk. When the exposure to the stock market is very high, the returns are also high compared to other investment options. However, not everyone is capable of taking risks.

Small savings schemes from the post office can be the best option for you. In this case, the risk component is also low, while the returns are equally good. Let us describe an investment in which the risk is low and the return is high. One of the investment options is Post Office Recurring Deposit.

How to start investing in Post Office RD

Post Office RD Deposit Account is a government backed scheme that allows you to deposit a nominal amount and earn a higher interest rate. You can start investing with as little as Rs 100. There is no maximum investment limit; You are free to invest as much as you want.

The account of this scheme will be open for five years. Banks, on the other hand, offer recurring deposit accounts for six months, one year, two years and three years. Every quarter, interest is calculated (at an annual rate) on the money deposited in it, and credited to your account (including compound interest) at the end of the quarter.

How much interest will you get?

Currently, 5.8% interest rate is available on recurring deposit schemes; This new rate will be effective from April 1, 2020. The Government of India sets interest rates for all its small savings programs every quarter.

If you invest 10 thousand every month then you will get 16 lakh rupees

If you invest Rs 10,000 every month in the Post Office RD scheme for ten years, you would have accumulated more than Rs 16 lakh at the rate of 5.8 per cent.

10,000 per month investment

interest 5.8%

Maturity 10 years

Maturity amount after 10 years = Rs 16,28,963

Important things about RD account

You must keep depositing money in the account regularly; If you do not do so, you will be charged a one percent monthly fine. After missing four installments, your account will be closed.

Post Office RD. tax on

TDS is deducted from recurrent deposit investments, and 10 per cent annual tax is applicable if the deposit exceeds Rs.40,000. Interest earned on RD is taxable, but not on the entire maturity amount. Similarly like FDs, investors who do not have any taxable income can claim TDS exemption by filling Form 15G.

Apart from the post office, government and private banks also offer the facility of recurring deposits.

Bank Recurring Deposit Bank RD Rates Tenure

Yes Bank 7.00% 12 Months to 33 Months

HDFC Bank 5.50% 90/120 Months

Axis Bank 5.50% 5 Years to 10 Years

SBI Bank 5.40% 5 Years to 10 Years

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