This Post Office scheme offers Rs 16 lakh at maturity on monthly deposit of Rs 10,000; details here

December 08,2022

Post Office schemes are regarded as one of the safest investment options in the country, especially for middle-class investors because they promise greater returns and are supported by the central government. Among popular post office schemes, a recurring deposit plan has been found quite beneficial by individuals. One can make an investment in this plan with an initial deposit of just Rs 100.

The recurring deposit program run by the post office is an efficient way to make bigger savings. This post office scheme is currently generating interest at a rate of 5.80 per cent. This interest rate has been in effect since 1 April 2020. The central government determines the interest rates for its savings programs every three months. Based on their convenience, people can opt to participate in the post office recurring deposit plan for a duration of one year, two years, or even more.

Investment criteria and loan feature:

Anyone who is at least 18 years old can simply register for this savings program. Parents are also capable of setting up accounts for minor children. This strategy also allows users to qualify for a loan. If people open an account under this plan and deposit 12 instalments, they can acquire a loan from banks using this as collateral. Additionally, they are entitled to borrow up to 50 per cent of their total deposit under this agreement.


If individuals make an investment in this post office plan, they will be paid interest every three months. At the conclusion of every quarter, the interest and compound interest are transferred to your account. To open an account under this plan, you need to go to the nearest post office branch.

If someone invests money into this plan for a longer duration, they can generate a significant amount of funds for themselves. For example, if you deposit Rs 10,000 each month in the recurring deposit plan, you would earn Rs 16 lakh after a decade. In the case of Rs 10,000 per month for a year, your investment will be Rs 1,20,000. Since you chose a tenure of 10 years to participate in this plan, this will require an investment of about Rs 12,00,000. Following this, you will obtain a return of Rs. 4,26,476 when the scheme matures. In this scenario, after 10 years, you will get Rs 16,26,476 in total.