New Delhi: India Post Office offers some of the safest investment schemes providing returns better than fixed deposits or savings accounts. For instance, the Post Office Recurring Deposit Account offers impressive interest along with the safety and security of returns.
Investors can invest a minimum of Rs 100 in the Post Office Recurring Deposit Account to start saving for their future. Moreover, investors can invest as much they want because there is no upper cap on investments.
The account matures after a fixed term of five years. Investors will then have to withdraw the funds from the account. At present, investors receive a 5.8 per cent interest on their investments in Post Office Recurring Deposit Account.
Investors receive interest every quarter, so with the power of compounding investors can witness their money growing in a snap. For instance, if investors invest Rs 10,000 per month in the Post Office Recurring Deposit Account, then their investment coupled with interests will grow into Rs lakh in just 10 years.
However, for that, investors need to continue investing every month. In case, if an investor fails to pay the sum on time, then her or she needs to pay a penalty as well. Moreover, the account gets automatically closed if an investor fails to pay the premium for four continuous months.
But the good news is that investors can renew the account within two months from the date of default. However, if they miss that window too, then the account is closed permanently.
Investors can also nominate their relatives or friends. At the time of the death of the investor, a nominee can claim the funds.