Post Office RD Account: If you invest Rs 2500 every month in the Post Office RD scheme, then after 5 years you will get more than Rs 1 lakh. This is a safe scheme of the government, which can be a better option for regular savings and assured returns.
Post Office RD Account: If you deposit Rs 2500 every month in the Post Office Recurring Deposit (RD) scheme, then how much return will you get after 5 years (60 months)? To know this, we are going to calculate on the basis of the current 7.4% annual compounding interest rate of the post office. Let’s know the complete calculation.
What is Post Office RD Scheme?
Post Office RD Scheme is a savings scheme run by the Government of India that gives safe and guaranteed returns. In this, you have to deposit a fixed amount every month for a fixed period (5 years) and get interest on it.
- Minimum investment: Rs 100 per month
- Maximum investment: No upper limit
- Interest rate: 7.4% (for the first quarter of FY 2024-25)
- Maturity period: 5 years (60 months)
How much will you get if you deposit Rs 2500 every month?
If you deposit Rs 2500 every month under the Post Office Recurring Deposit Scheme and get interest at the rate of 7.4% (compounded, quarterly), then what will be the calculation of the total amount you will get after 5 years (60 months)?
RD Calculation
- Monthly Investment: Rs 2500
- Total Deposit Amount in 60 Months: Rs 1.50 Lakh
- Interest Rate: 7.4% per annum (Quarterly Compounding)
- Maturity Amount: Rs 1,81,907
- Total Interest: Rs 31,907
Benefits of RD Scheme
- Safe Investment: Government Guaranteed Returns
- Regular Savings: You can create a large fund from a small amount
- Loan Facility: You can take a loan against RD before maturity
- Nomination Facility: You can make someone a nominee
Tax on RD
TDS (Tax Deducted at Source): If the interest is more than Rs 40,000 (Rs 50,000 for senior citizens), then 10% TDS is deducted.
No Section 80C Exemption: No tax exemption under 80C is available on the interest received on RD.
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