Post Office Scheme are always appealing and lucrative for middle class group. The Scheme offers small investment, which involve low risk and offers high profit in returns. If you are amongst those investor who wanna invest their hard earned money to earn high yield then Post /office Recurring Deposit is the best Scheme. Most scheme of post office involve low risk on investment and offer high profit in returns. Thus if you are looking for small investment which involve lower risk of loosing money and in return guarantees high rate of return, then definitely go with Post Office Recurring Deposit scheme.
Post office Recurring Deposit Scheme: Post Office Recurring Deposit (RD Scheme) is a government regulated scheme which can be started with small amount of Rs 100. There is no upper limit in terms of starting this scheme. This scheme is opened for 5 years. Annual Interest is calculated on the final amount deposited at the end of the quarter. Interest is credited on the account of the account holder (along with compound Interest) on quarter end. Post Office Recurring Deposit interest is 5.8% per annum , effective from 1 April 2020. Bank alters rate of interest on all small saving scheme on quarter end.
How to Earn 15 Lakh from Recurring Deposit Scheme
Suppose of a investor, deposit Rs 10,000 per month for 10 years then the amount accumulated at end maturity will be 12,00,000
As RD Scheme offers rate of interest of 5.8% annually.
Maturity Value at end of 10 years = 1896000
Though this scheme is lucrative still it has some negative aspects. Like, the scheme holder shouldn’t miss any monthly installment else bank will impose penalty of 1%. Also, in case of failing to make you installment, the RD account gets closed.
Tax Charged on RD Scheme: If the investment on RD Scheme exceed Rs 40,000 annually, 10% annual Interest is charged. Not full amount is taxable on maturity