To receive a guaranteed return of ₹45,459 on a ₹4,000 monthly deposit, you can invest in the Post Office Recurring Deposit (RD) scheme. The return is achievable over a 5-year investment period, based on the current interest rate.
Scheme at a glance
| Particulars | Details |
|---|---|
| Scheme Name | 5-Year Post Office Recurring Deposit Account (RD) |
| Monthly Deposit | ₹4,000 |
| Tenure | 5 years (60 months) |
| Interest Rate | 6.7% per annum, compounded quarterly |
| Total Investment | ₹2,40,000 (₹4,000 x 60) |
| Total Interest Earned | ₹45,459 (approximate) |
| Maturity Amount | ₹2,85,459 (approximate) |
Key features of the Post Office RD scheme
- Assured returns: As a government-backed scheme, the Post Office RD guarantees the maturity amount, providing a safe and risk-free investment option for your savings.
- Flexible deposits: You can open an account with a minimum monthly deposit of just ₹100, with no upper limit.
- Convenient account opening: You can open an RD account individually or jointly (up to 3 adults). You can also open an account for a minor aged 10 or above. Accounts can be opened either by visiting a post office branch or online through the India Post Payments Bank (IPPB) app.
- Loan facility: After depositing 12 installments over one year, you can avail of a loan of up to 50% of the balance in your account.
- Premature closure: You can close the account prematurely after three years. The interest rate applicable will be that of a Post Office Savings Account.
- Advance deposits: A rebate is offered for depositing at least six monthly installments in advance.
- Taxation: The interest you earn is taxable as per your income tax slab. If the interest earned in a financial year exceeds ₹10,000, TDS may be deducted.
- Missed payments: A penalty of ₹1 is charged for every ₹100 of the deposit amount for each month of default. If you miss four consecutive payments, the account will become inactive, but it can be revived within two months.
How to invest and maximize returns
To get started with this scheme, you can visit your nearest post office with the required documents (identity and address proof, and photographs) and an initial deposit. For those with an existing Post Office Savings Account and internet banking, the process can be done online through the IPPB app.
For a monthly deposit of ₹4,000, the guaranteed return of ₹45,459 in interest over 5 years is a clear and simple way to grow your savings steadily. The quarterly compounding of interest helps your money grow faster over the fixed, 5-year tenure. This makes the Post Office RD an excellent choice for anyone who prefers safety and guaranteed returns over market-linked investments.
I’m Oliver, a writer dedicated to covering finance news and government aid updates with accuracy and clarity. My work focuses on breaking down complex economic developments, market movements, and policy changes into clear, easy-to-understand stories. Whether I’m reporting on investment trends, stimulus programs, or government assistance initiatives, my goal is to provide readers with timely insights that help them stay informed and make confident decisions in today’s fast-changing world.