A big fund will be created by investing small amounts through RD: Post Office is giving 6.7% annual interest on this, know the special things related to it

With the help of Post Office Recurring Deposit (RD), you can easily create a large fund. You can use it like a piggy bank. If you keep depositing a fixed amount in it every month, then after 5 years of maturity, you will have a large amount in your hand.

At present, it is getting 6.70% annual interest. By depositing 2 thousand rupees every month for 5 years, you can create a lump sum fund of 1 lakh 42 thousand rupees. Here we are telling you about Post Office RD…

First understand what is RD?

Post Office Recurring Deposit or RD can help you save a lot. You can keep investing a fixed amount in it every month when you get your salary and after 5 years when it matures, you will have a big amount in your hand. You may not get interest on depositing money in the piggy bank at home, but you get a hefty interest on depositing money here.

A fund of Rs 70,000 will be created by investing Rs 1,000/month for 5 years

If you invest Rs 1,000 per month in India Post’s RD, then at the rate of 6.7% annual interest, it will become approximately Rs 70,989 when it matures after 5 years.

You can take loan on the money deposited in RD

Loan facility is also available on RD. That is, if you need money in between, you can take a loan on it without breaking the RD. In this, loan is available at a lower interest rate than personal loan. If you deposit 12 installments continuously in the five-year RD of post office, then you can avail the loan facility. That is, to avail this facility, you will have to deposit money continuously for at least one year. After one year, you can take a loan up to 50% of the amount deposited in your account.

If you take a loan on RD, then the interest on the loan amount will be 2% + the interest rate applicable on the RD account. For example, currently 6.7% interest is being given on RD, in such a situation, if you take interest on RD now, then you will get a loan at an interest rate of 8.7% per annum.

Any person can open an account

Any person can open an RD account. This account can also be opened in the name of small children. If you are 10 years or older, you can operate it yourself. 3 people can also open a joint account together. You can open an account in it through any post office. Click here for more information