If you are considering investing in government schemes by not taking the stock market or mutual funds and looking for an investment option like SIP, in which the resc is negligible, then the recurring deposit of Post Office can prove to be correct. You can start investing from just 100 rupees in this scheme. There is no limit to maximum.
Any investment can be planned under the Post Office RD Scheme. A minor can also open an account in it. Any minor, aged 10, can open an account with the help of his parent. After the completion of 18 years, Nabbling will have to fill the new KYC and fresh opening form. This account can be opened with mobile banking or e-banking facility.
Rules to deposit installments every month
The first month will be done while opening the deposit account and such a deposit amount will be equal to the value of the account. If the account calendar is opened before the sixteenth day of the month, the next deposit amount of the first deposit amount will be done till the 15th day of every month and if the account is opened after the 16th day of the month and after the final workday, the deposit will be done between the final working day from the 16th day of every month.
Five year maturity
If you open an account under RD scheme, then your account maturity will be completed in 5 years. If you want, you can increase it by 5 years. Apart from this, if you want to close it in the middle, then you can close it after 3 years of opening the account. If the account holders die, the nominee can claim it. Also, if the nominee wants it, it can also continue.
Tax rule on rd
Investment in Post Office RD, under Section 80C of Income Tax Act, 1961, is eligible for tax deduction to a limit of ₹ 1.5 lakh. However, the rule of TDS applies to the earnings made from interest, that is, you have to refer to Tidis. If you are earning more than 10 thousand interests annually, then you will have to pay 10 percent tax, but if you are unable to provide PAN, then this tax will be applicable 20 percent.
Loan also gets benefits
After the account remains running for at least 1 year and depositing 12 months in the account, the depositor can take up to 50 percent of the amount deposited in the account. If you want, you can repay the loan in a lump or monthly installment. According to the rules of the scheme, in addition to the interest rate applicable to the loan account, the extra 2 % interest will have to be paid. If the loan is not paid till the account is closed, then the outstanding amount will be recovered from the account deposited when the account is closed.
How will you get a profit of 35 lakhs?
If you invest 50 thousand rupees every month in this scheme of post office, then you will get a interest of 6.7 percent annually. That is, you can earn Rs 5,68,291 with interest, which will come under TDC deduction. On the other hand, if you deposit Rs 30,00,000 in 5 years. In such a situation, you will get Rs 35,68,291 after five years.
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