Post Office Scheme: Everyone wants to deposit a major part of their salary but fails to do so due to lack of information and extravagant expenses. If you also want to save by cutting down on your expenses, then post office small savings schemes can prove to be a great option for you. The risk factor is also low in this and the returns are also good.
Invest in Ace Post Office RD
Post Office RD Deposit Account is a government guaranteed scheme of depositing small installments with better interest rate. In this way, you can start investing with a small amount of just Rs 100. There is no maximum investment limit, you can deposit as much money as you want.
Interest is added to the account every quarter
Under this scheme, the account is opened for a minimum period of five years. However, banks offer the facility of recurring deposit accounts for six months, 1 year, 2 years, 3 years. In this, interest is calculated every quarter on the deposited money and it is added to the deposit amount of the account holder at the end of every quarter.
so much interest on RD
At present, interest on Recurring Deposit (RD) scheme is available at the rate of 5.8 percent. The Government of India fixes the interest rates of all its small savings schemes every quarter.
If you put 10 thousand every month, you will get 16 lakhs
If you invest Rs 10,000 every month in the RD scheme of the post office for 10 years, then after 10 years you get more than Rs 16 lakh at an interest rate of 5.8 percent.
Required condition of RD account
Under the RD scheme, you have to deposit money continuously in the account. If you did not deposit the money on time, then you would have to pay a fine of one per cent every month. The account is closed after 4 consecutive installments are missed.
Tax is levied on post office RD
TDS is deducted on investment in RD scheme. If the amount deposited is more than Rs 40,000 then tax is levied at the rate of 10 per cent per annum. Also, the interest earned on RD is also taxable, but the entire maturity amount is not taxed. Like FDs, investors who do not have any taxable income can claim TDS exemption by filling Form 15G.
first published:June 7, 2022, 3:16 p.m.