Post Office Scheme: Become A Millionaire By Just Investing Rs 10,000 Per Month

This information is for everyone, who wants to become a millionaire, including the people from the farming community or agriculture sector. You can get huge profits with less risk by investing in Post Office Schemes. A small savings plan from Post Office may be the best alternative for you. In this case, the risk component is low, while the returns are equally good.   

Through this article, today we will inform you about an investment, in which the risk is low & the profits are definitely high. One of the investment options is a Post Office Recurring Deposit (RD).

How to Start Investing in Post Office Recurring Deposit (RD) 

Post Office Recurring Deposit (RD) Account is a government-backed scheme, which allows you to deposit modest amounts of money & earn a higher interest rate. You can start with investing as little as Rs 100. There is no maximum investment limit in this; you are absolutely free to invest as much as desire. 

This scheme’s account will be open for 5 years. Banks will provide Recurring Deposit (RD) Accounts for 6 months, a year, 2 years & 3 years. Every quarter, interest is calculated on the money deposited in it & it is directly credited to your account at the conclusion of the quarter.

How Much Interest Will You Get?

• Currently, a 5.8% interest rate is available in RD Schemes; this new rate took effect on April 1, 2020. Every quarter, the Indian Government set interest rates for all its small savings programs.

• If you invest R 10,000 every month in the Post Office RD Scheme for 10 years, you will have accumulated more than Rs 16 lakhs at a rate of 5.8%.

• If, Rs 10,000 is invested per month.

• Interest 5.8%

• Maturity 10 years.

• Maturity amount after 10 years = 16,28,963.

Important Things about Recurring Deposit (RD)

• You must continue to deposit the money into the account on regular basis, and if you do not, then you will be charged a 1% monthly penalty.

• And, after 4 missing installments, your account will be closed.

Tax on Post Office Recurring Deposit (RD)

• TDS is deducted from the RD investments & if the deposit exceeds Rs 40,000, a 10% annual tax is applied.

• The interest generated on RD is taxable, but not the entire maturity amount.

• Similarly to the FDs, investors, who do not have any taxable income, can claim TDS exemption by completing from 15G.

• Apart from Post Office, the government & private banks also provide the facility of Recurring Deposit (RD).

Bank Recurring Deposit, Bank RD Rates, Duration

• 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.