If you’ve ever wondered how to grow your savings steadily and safely, then “Invest 1000 rupees in this Post Office scheme and earn 8 lakh rupees” is a headline that surely catches your eye. The idea of turning a small monthly amount into lakhs might sound like magic, but it’s very much possible—thanks to the power of compound interest and consistent savings through Post Office Small Savings Schemes.
In this article, we’ll break down how you can earn up to ₹8 lakh by investing just ₹1,000 per month in a trusted government-backed Post Office scheme. This guide is perfect for young savers, parents planning for their children’s future, and anyone looking for a safe long-term investment with guaranteed returns.
Invest 1000 Rupees in This Post Office Scheme
| Feature | Details |
|---|---|
| Scheme Name | Post Office Recurring Deposit (RD) |
| Monthly Investment | ₹1,000 |
| Interest Rate (as of Apr 2025) | 6.7% p.a. (compounded quarterly) |
| Tenure Required to Reach ₹8 Lakh | Approx. 25 years |
| Total Investment | ₹3,00,000 (1,000 x 12 x 25) |
| Maturity Amount | Approx. ₹8,00,000 (with interest) |
| Risk Level | Low (Government-backed) |
| Official Link | India Post RD |
Turning a small habit into a big reward is exactly what the Post Office RD scheme is all about. With just ₹1,000 a month and a little patience, you can create a substantial corpus of ₹8 lakh over time. It’s safe, easy to manage, and backed by the Government of India.
Whether you’re just starting your financial journey or planning a secure future for your children, this scheme is an ideal foundation.
What Is the Post Office RD Scheme?
The Post Office Recurring Deposit (RD) is a savings plan offered by India Post under its small savings schemes umbrella. It allows investors to deposit a fixed amount every month and earn interest on it, compounded quarterly.
This scheme is especially suitable for:
- Salaried individuals
- Students saving pocket money
- Homemakers
- Senior citizens looking for disciplined savings
Since the scheme is backed by the Government of India, it’s among the safest investment options in the country.
see also: Post Office Scheme: Whether It Is Daughter’s Education or Marriage, Get 8.2% Interest
How Does ₹1,000 per Month Grow to ₹8 Lakh?
Let’s understand this with a simple example.
You invest ₹1,000 every month into the RD scheme. This money earns 6.7% interest annually, compounded every quarter.
Now let’s calculate the corpus over different time periods:
₹1,000 per month in Post Office RD:
| Tenure | Total Investment | Maturity Value (Approx.) |
|---|---|---|
| 5 years | ₹60,000 | ₹70,000 – ₹75,000 |
| 10 years | ₹1,20,000 | ₹1.66 lakh |
| 20 years | ₹2,40,000 | ₹4.5 lakh |
| 25 years | ₹3,00,000 | ₹8 lakh |
So yes, investing ₹1,000/month for 25 years can result in a maturity amount close to ₹8 lakh.
Why Choose the Post Office RD Scheme?
Guaranteed Returns
Since this scheme is government-backed, you don’t have to worry about market risks. The interest rate is reviewed quarterly by the Ministry of Finance, ensuring transparency.
Flexibility
You can start with as little as ₹100. But to reach the ₹8 lakh mark, ₹1,000 per month is ideal. You can also open multiple RD accounts in the names of your children or spouse.
Easy Withdrawal & Loan Facility
After one year, you can take a loan of up to 50% of the balance amount. This can be useful in emergencies.
Compounding Advantage
Quarterly compounding helps your money grow faster than annual compounding, giving you better returns over the long term.
How to Open a Post Office RD Account
Step-by-Step Guide
- Visit your nearest Post Office or download the India Post Mobile Banking app.
- Submit KYC documents (Aadhaar, PAN, and address proof).
- Fill the RD account opening form.
- Deposit the first installment (minimum ₹100).
- Choose auto-debit option to ensure you never miss a monthly deposit.
You can also open a Joint RD Account, making it a great option for couples or parents saving for their kids.
Tips to Reach Your ₹8 Lakh Goal Faster
Here are some expert suggestions to reach the milestone quicker:
- Increase your monthly contribution over time as your income rises.
- Use auto-debit from your savings account to avoid missing payments.
- Reinvest the maturity amount into other high-yield Post Office schemes like MIS or Senior Citizens Savings Scheme.
Tax Implications
While the RD interest is fully taxable under “Income from Other Sources,” no TDS is deducted. So, if your income is taxable, you must declare the interest in your ITR. If not, no tax needs to be paid.
For tax-saving benefits, you may consider pairing your RD with Post Office Time Deposit (5-year) or PPF, which are eligible for deductions under Section 80C.
see also: Start Your Savings with Just ₹100, Get Great Returns from RD Scheme
Post Office Scheme FAQs
Q1. Can I open a Post Office RD account online?
Yes, through the India Post Internet or Mobile Banking platform if you already have a savings account.
Q2. Is premature withdrawal allowed?
Only after 3 years, and with reduced interest. Best to stay invested.
Q3. Can NRIs invest in this scheme?
No, NRIs are not eligible for Post Office small savings schemes.
Q4. Is the interest fixed?
No, it’s revised quarterly by the government, but it stays consistent for your existing deposit.
Q5. What happens if I miss a payment?
A small default fee of 1 rupee per 100 rupees is charged. If you miss 4 consecutive deposits, the account is discontinued.
