This Post Office scheme is amazing, you can earn Rs 2.54 lakh from interest alone

If you're looking to grow your savings without risk, a special post office scheme can be a money-making machine. By depositing a small amount each month, you can build a substantial corpus over the years.

If you want to keep your money in a safe place and earn a good income, Post Office small savings schemes are an excellent option. 

One such scheme is the Post Office Recurring Deposit (RD), where you can accumulate a substantial corpus by making small monthly deposits. 

The special feature is that this scheme offers attractive interest rates and the government itself guarantees its safety.

The government is offering an attractive interest rate of 6.7%.

Post Office RDs are particularly beneficial for those seeking safe returns with low risk. The government currently offers an annual interest rate of 6.7%, which is better than many fixed income options. 

If you deposit Rs 5,000 every month, you can earn a substantial income from interest alone for five years and then an extension.

Know the complete calculation

The calculation of a Post Office RD is easy to understand. If you deposit Rs 5,000 every month for 5 years, the total investment is Rs 3 lakh. At an interest rate of 6.7% over this period, you earn approximately Rs 56,830 in interest. This means that after 5 years, you will have Rs 3,56,830. 

If you extend this RD for another 5 years, the total deposit will reach Rs 6 lakh. And after 10 years, the total interest earned will be approximately Rs 2,54,272. Thus, your total fund after 10 years becomes Rs 8,54,272.

How much money can you start investing with?

The most important feature of this scheme is that you can open an account with just ₹100. An RD account can be easily opened by visiting any nearby post office. It also offers the facility of premature closure, meaning the account can be closed before maturity if needed.

You can also take a loan if needed.

Another major benefit of the Post Office RD scheme is the loan facility. If you have maintained your RD account regularly for at least one year, you can avail a loan of up to 50% of the deposit amount. This loan only costs 2% additional interest, which is generally much lower than market rates.