Post Office Scheme: The Post Office’s Small Savings Plans are among the best government savings programmes. Post office schemes are risk-free long-term investments with guaranteed returns. If you are a risk-taking investor, these are better options. The interest rates for the October–December 2023 quarter of Post Office Small Savings Schemes have been made public by the government. This entails a 20 basis point increase in the interest rates on Post Office Recurring Deposits (Post Office RD).
Finance Ministry’s Announcement
The Finance Ministry announced that there has been a 20 basis point increase in the interest rates on Post Office Recurring Deposits (Post Office RD). The 5-year post office RD will now receive 6.7 percent annual interest from October 1, 2023 to December 31, 2023, as opposed to 6.5 percent. Interest is compounded in this on a quarterly basis.
Flexible Investment Amount
One can invest a minimum of Rs 100 per month in a Post Office Recurring Deposit (PORD). Investments can be made up to any maximum amount. You are able to invest any amount of money in multiples of Rs 10. If you invest Rs 5,000 a month in Post Office RD, you will receive Rs 3,56,830 upon maturity in 5 years. You will invest a total of Rs 3 lakh in this, and interest of Rs 56,830 is assured. Upon the account’s five-year maturity, it can be extended for an additional five years. This means that your total guaranteed fund, if you maintain your RD for ten years, will be Rs 8,54,272. An interest income of Rs 2,54,272 will be guaranteed in this.
Unlimited Individual Accounts
For Rs 100, you can open an RD account at any post office branch. An individual can open an infinite number of accounts in this. In addition to a single account, up to three joint accounts can be opened here. Minors can open a guardian account. A post office RD account has a five-year maturity. However, after three years, premature closure is permitted. In the post office, loans may also be obtained against RD accounts. As a general rule, a loan may be taken for up to 50% of the total amount deposited into the account following 12 installments. Loan repayment options include lump sum and installment payments. There will be a two percent difference in interest rates between the loan and the RD. It has the ability to nominate people as well.