Invest Rs 10,000 and earn up to Rs 16 lakh in 10 years in THIS Post Office Scheme

New Delhi: The key to reaping a good savings amount is long term investment. Post Office Schemes not only give you assured return, they are also a good option for the people who don't want to take big risks.

One such Post Office Scheme is the Post Office Recurring Deposit Acount where a monthly investment of Rs 10,000 can get you up to Rs 16 lakh in 10 years.

Here is the calculation

Assuming that you invest Rs 10,000 every month in the Post office RD scheme. If you spend the amount for 10 years, then it you can acumulate Rs 16.28 lakh on maturity. This calculation is based on the current interest rate of of 5.8% on Post office RD scheme. From 01.04.2020, interest rates on the Post Office Recurring Deposit Acount is 5.8 % per annum (quarterly compounded).

Amount spent: Rs 10,000 every month

Interest: At the rate of 5.8%

Maturity: 10 years

Maturity amount after 10 years:  Rs 16,28,963 

Post Office Recurring Deposit Acount has 5 years (60 monthly deposits) of maturity from the date of opening. Account can be extended for further 5 years by giving application at concerned Post Office. Interest rate applicable during extension will be the interest rate at which account was originally opened. Extended account can be closed any time during the period of extension. For completed years, RD interest rate will be applicable and for period less than a year, PO Savings Account interest rate will be applicable. The RD account can be retained up to 5 years from the date of maturity without deposit also.