Build big fund with small investment with RD: Post office is offering 6.7% annual interest on this, know the special things related to it

With the help of Post Office Recurring Deposit (RD) you can easily build a large fund. You can use it like a piggy bank. If you keep depositing a fixed amount every month, after a maturity of 5 years you will have a huge amount in your hands. Presently 6.70% annual interest is being paid on it. In this, by depositing 2 thousand rupees every month for 5 years, you can create a fund of 1 lakh 42 thousand rupees. Here we are telling you about Post Office RD… First of all understand what is RD? Post Office Recurring Deposit or RD can help you save big. When your salary comes and when it matures after 5 years, you keep depositing a fixed amount into it every month, you will have a huge amount in hand. You may not earn interest on depositing money in a piggy bank at home, but depositing money here also earns you huge interest. By investing Rs 1 thousand per month for 5 years, a fund of Rs 70 thousand will be created if you deposit Rs. 1 thousand, it will mature after 5 years at 6.7% annual interest rate of around Rs. 70,989 will be. You can take loan against the money deposited in RD Loan against RD facility is also available. This means that if you need money in between, you can take a loan against it without breaking the RD. In this, loans are available at lower interest rates as compared to personal loans. If you deposit 12 consecutive installments in five years RD of post office, you can avail the loan facility. That is, to get this facility, you have to deposit the amount continuously for at least one year. After one year, you can take a loan of up to 50% of the amount deposited in your account. Anyone can open an account Anyone can open an RD account. This account can also be opened in the name of minor children. If you are 10 years old or above you can drive it yourself. 3 people can also open a joint account. You can open an account in this through any post office.

Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).