New Delhi: Postal system: Today, everyone should invest. However, there is a risk in investing. This is why people look for investment plans where the risk is lower and yields better returns. In such a situation, if you want to invest with such a plan where the returns are good and safe, then it may be good for you to invest in post office programs.
Post Office Recurring Deposit is a good option for investing in many post office programs. You can start investing in Post Office RD with just Rs 100. Also, there is no maximum investment limit. In this account is open for 5 years.
Banks offer the possibility of recurring deposit accounts for six months, 1 year, 2 years, 3 years. Interest on deposits is calculated quarterly (at an annual rate) and added to your account (including compound interest) at the end of each quarter.
How much interest will you get:
Currently, 5.8% interest is offered on the Recurring Deposit System. This new rate is applicable from April 1, 2020. For information, note that the government sets the interest rates for all its small savings plans each quarter.
If you put 10,000 each month, you will get 16 lakhs:
If you invest Rs 10 every month for 10 years in the post office RD scheme, after 10 years you will get Rs 16 lakhs at the rate of 5.8%.
Rs 10,000 invested each month
interest 5.8%
Maturity 10 years
Maturity amount after 10 years = Rs 16,28,963
Important RD Account Information
Keep in mind that keep depositing money into your RD account on time, if you don’t, you will have to pay a fine every month. On the other hand, if you do not deposit the installments 4 times in a row, then your account will be closed.
Post office tax RD:
TDS is deducted on investment in recurring deposits, taxed at the rate of 10% per annum if the deposit amount exceeds Rs.40,000. Interest earned on RD is also taxable, but the amount at maturity is not taxable. Investors who do not have taxable income can claim an exemption from TDS by filing Form 15G, as is the case with DFs.
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