The Recurring Deposit (RD) scheme is one of the most popular small savings schemes offered by the Post Office. By saving a small amount every day, you can build a substantial fund for your future. Especially since this scheme is guaranteed by the central government, the investment is considered completely safe.

You can start an account under this scheme with just ₹100. There is no investment limit. Currently, this scheme offers an annual interest rate of 6.7%. You can open an account in any post office, either in your single or joint name.

If you deposit Rs 300 daily, or Rs 9,000 per month, into this scheme, your total investment will reach Rs 5.40 lakh in five years. At maturity, you will receive Rs 6,42,291 at an interest rate of 6.7%. Of this, approximately Rs 1,02,291 will be interest income alone.

If you extend this RD scheme for another five years, your total investment will reach ₹10.80 lakh in 10 years. With the interest earned, your total corpus could reach ₹15,37,692. Therefore, this scheme can be beneficial for those who save daily and with discipline. However, there's one important rule to remember: If an installment isn't paid on time in any month, a 1% penalty is charged each month. Furthermore, if four consecutive installments are missed, the RD account may be automatically closed.

Due to its government guarantee, safe investment, regular savings habit, and attractive returns, the Post Office RD scheme is considered a good option for long-term financial planning. However, before investing, it's a good idea to check the current interest rates and terms at the Post Office.

PC: Rochak Khabre