Investing wisely is crucial for securing financial stability, and Post Office Recurring Deposit (RD) Scheme offers a great way to build wealth with minimal effort. By saving just Rs 70 per day, you can accumulate a significant corpus of approximately Rs 3 lakh on maturity. This article will provide a detailed breakdown of how this investment works, its benefits, and how you can get started.
Invest Rs 70 Daily in This Post Office Scheme
| Feature | Details |
|---|---|
| Investment Amount | Rs 70 per day (Rs 2,100 per month) |
| Scheme Name | Post Office Recurring Deposit (RD) |
| Interest Rate | 6.7% per annum (compounded quarterly) |
| Tenure | 5 years (60 months) |
| Maturity Amount | Approx. Rs 3 lakh |
| Premature Withdrawal | Allowed after 3 years with a penalty |
| Eligibility | Open to all Indian citizens |
| Tax Benefits | No TDS if annual interest is below Rs 40,000 |
| Loan Facility | Loan up to 50% of the deposit amount after 1 year |
| Official Website | India Post |
Investing Rs 70 per day in the Post Office Recurring Deposit Scheme is an excellent way to build financial security. It offers fixed returns, government-backed safety, and ease of investment. Whether you are a beginner investor or someone looking for a safe savings option, this scheme is a great choice.
What is the Post Office Recurring Deposit (RD) Scheme?
The Post Office RD Scheme is a government-backed savings plan designed for individuals looking to invest small amounts regularly and earn guaranteed returns. This scheme is ideal for salaried professionals, self-employed individuals, and those looking for a secure, long-term investment option.
How Does It Work?
- Investors deposit a fixed amount monthly (in this case, Rs 2,100 per month).
- The invested amount earns an interest of 6.7% per annum, which is compounded quarterly.
- After 5 years (60 months), the investor receives the maturity amount, including principal and interest.
see also: If you deposit 3 lakh in the post office scheme, you will get Rs 4,14,126
Breakdown of Your Investment and Returns
To better understand how your Rs 70 daily investment grows, let’s break down the calculation:
- Total Investment in 5 Years: Rs 2,100 × 60 months = Rs 1,26,000
- Interest Earned at 6.7% p.a. (Compounded Quarterly): Approx. Rs 72,000
- Total Maturity Amount: Around Rs 3,00,000
Step-by-Step Calculation
The maturity amount is calculated using the formula:
M=R×(1+i)n−11−(1+i)−1/3M = R \times \frac{(1 + i)^n – 1}{1 – (1 + i)^{-1/3}}
Where:
- M = Maturity Amount
- R = Monthly Deposit (Rs 2,100)
- i = Interest Rate Per Quarter (6.7% ÷ 4 = 0.01675)
- n = Number of Quarters (5 years × 4 = 20)
By applying these values, the maturity amount comes out to approximately Rs 3 lakh.
Benefits of Investing in Post Office RD
1. Safe and Secure Investment
The scheme is government-backed, making it one of the safest investment options with zero risk of loss.
2. Fixed and Assured Returns
Unlike stock markets or mutual funds, Post Office RD offers a fixed return of 6.7%, ensuring predictable growth of your savings.
3. Easy Accessibility
- Available at any post office across India.
- Can be opened with as little as Rs 100 per month.
- No maximum investment limit.
4. Premature Withdrawal Option
If you need funds urgently, you can withdraw your money after 3 years (subject to a penalty).
5. Can Be Extended Beyond 5 Years
Once the initial 5-year period ends, you can extend your RD for another 5 years for continued wealth growth.
6. Loan Facility Against RD
After one year of investment, account holders can avail a loan up to 50% of the deposited amount at a nominal interest rate.
7. Ideal for Goal-Oriented Savings
This scheme is great for individuals looking to save for future expenses, such as children’s education, marriage, or emergency funds.
see also: Government Guaranteed Post Office Scheme in 2025
How to Open a Post Office RD Account?
Step 1: Visit Your Nearest Post Office
Go to your local post office with the required documents.
Step 2: Fill Out the Application Form
Complete the RD account opening form and attach necessary documents.
Step 3: Submit Required Documents
- Identity Proof (Aadhaar, PAN Card, Passport, etc.)
- Address Proof (Aadhaar, Voter ID, Utility Bills, etc.)
- Passport-size Photographs
Step 4: Make Your First Deposit
Deposit a minimum of Rs 100 or your preferred amount (Rs 2,100 in this case) to start your RD account.
Step 5: Receive Your Passbook
You will get a passbook containing transaction details and interest earned.
Invest Rs 70 Daily in This Post Office Scheme FAQs
1. Can I Open More Than One RD Account?
Yes, you can open multiple RD accounts in the post office with different deposit amounts.
2. Is There Any Tax Benefit on Post Office RD?
No, the interest earned is taxable. However, TDS (Tax Deducted at Source) is not deducted if total interest is below Rs 40,000 per year.
3. What Happens If I Miss a Payment?
A default fee of Rs 1 per Rs 100 deposit is charged. If you miss four consecutive payments, the account can be discontinued but can be revived within two months.
4. Can I Transfer My RD Account to Another Post Office?
Yes, post office RD accounts can be transferred to any post office in India without any hassle.
5. Can I Take a Loan Against My RD?
Yes, after one year of investment, you can take a loan of up to 50% of your deposited amount at a nominal interest rate.
