Deposit Rs.5000 and Get Rs.3.56 lakhs in Post Office Scheme 2024
By Anupama Deshpande | April 25, 2024
Deposit just Rs.5000 p.m. and you will get Rs.3.56 lakhs on maturity after 5 years in Post Office Scheme. Yes, it is true. We are talking about the RD scheme of the post office which is known as Post Office Recurring Deposit Scheme.
Post Office Recurring Deposit Scheme is a scheme offered by India Post where you can deposit a fixed amount every month for a specific period of time and earn a handsome returns on maturity. Minimum amount to open a post office RD account is Rs.100 and thereafter, you can deposit any amount in multiples of Rs.10 each month without any upper ceiling.
Deposit Rs.5000 and Get Rs.3.56 lakhs in Post Office Scheme
Here, we explain you as to how much amount you get on maturity, if you start an RD with Rs.5000 for 5 years. We have made the calculations at 6.70% p.a. interest rate offered by the post office currently. Note that the interest compounding by the post office RD is quarterly.
| Points | Details |
|---|---|
| Monthly Deposit | Rs.5000 |
| Tenure | 5 years |
| Rate of Interest | 6.70% p.a. |
| Interest Compounding | Quarterly |
| Maturity Value | Rs.3,56,829 |
| Interest Earned | Rs.56,829 |
We can see that if you have invested Rs.5000 p.m. in post office RD for 60 months or 5 years without any default, you will receive Rs.3,56,829 on maturity. In this way, you will not only get a good interest rate on your deposit but also get advantage of quarterly compounding of interest. Another benefit from this scheme is, you do not require to deposit lump sum amount.
Highlights of Post Office RD
Let us quickly see all important aspects of the Post Office Recurring Deposit.
| Aspect | Description |
|---|---|
| Scheme Name | Post Office Recurring Deposit |
| Monthly Deposit Amount | Minimum Rs.100 & then in multiples of Rs.10; No maximum limit |
| Tenure | Maximum 5 years, which can be further extended to 5 years more |
| Rate of Interest (From 01.01.2024 onwards) | 6.70% p.a. |
| Monthly Deposit | Rs.5000 |
| Discounts for advance deposits | Rebate of Rs.40 is offered for 12 deposits and Rs.10 for 6 deposits |
| Loan Facility | Depositors can avail of 50% of the available balance after the completion of 1 year |
| Number of RD Accounts | Any number of PO RD accounts can be opened |
Eligibility Criteria & Documents Required for Post Office RD Scheme
Post Office Recurring Deposit account can be opened by,
- Applicant should be resident Indian individual
- Indian Nationals who are over the age of 18 years
- A guardian on behalf of minor who is aged less than 10 years
- It can also be opened in the name of a minor who is atleast 10 years old
- Joint account can be opened by adults
| Document | Description |
|---|---|
| Account Opening Form | Post Office Recurring Deposit Account Opening Form |
| Photographs | 2 recent passport size coloured photographs |
| Identity Proof | Aadhaar card, passport, PAN card, voter's id card, etc. |
| Address Proof | Aadhaar card, passport, voter's id card, ration card, latest utility bill, etc. |
| Age Proof | Birth certificate, copy of marksheet, etc. |
| PAN/ Form60 or 61 | Copy of PAN or declaration in Form 60 or 61 |
You also need to mention nominee details in the form and a signature of a witness to complete the account opening formalities.
Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.