Invest 10,000 rupees and get 16 rupees at maturity

There are risk factors in investing. In such situations, you want to invest in a place where your money is safe and you get good returns. Due to the high risk in the stock market, the returns are higher than other investment products. However, not everyone has the ability to take risks. Therefore, if you need a profitable investment, the post office scheme is a good choice.

A small post office savings plan is the best option for those looking for a safe investment option. It has a low risk factor and good returns.

The Post Office RD Deposit Account is a government-guaranteed scheme for depositing small installments at better interest rates. Now you can start investing in a small amount of just 100 rupees. There is no maximum investment limit, you can invest as much money as you want.

Accounts for this scheme will be open for 5 years. However, banks do offer 6-month, 1-year, 2-year, and 3-year time deposit account functions. Interest is calculated quarterly (on an annual basis) on the money deposited and added to your account at the end of the quarter (including compound interest).

Currently, a 5.8% interest rate is available on the time deposit scheme. This new rate will be applied from April 1, 2020. The Government of India fixes interest rates on all small savings schemes quarterly.

If you invest 10,000 rupees a month in the post office RD scheme for 10 years, you will get more than 160,000 rupees at a rate of 5.8% in 10 years.

Please note that you need to keep depositing money into your account on a regular basis. If you do not deposit, you will have to pay a monthly penalty of 1%. After missing 4 installments, your account will be closed.

TDS will be deducted from your investment in time deposits. If the deposit exceeds 40,000 rupees, the tax will be levied at an annual rate of 10%. Interest earned on RD is also taxable, but the entire maturity amount is not taxable. Investors without taxable income can claim TDS tax exemption by submitting Form 15G, as in the case of FD.

Invest 10,000 rupees and get 16 rupees at maturity

Source link Invest 10,000 rupees and get 16 rupees at maturity

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