Post Office bumper scheme: Know how to earn over ₹25 lakhs in 10 years

New Delhi: The Post Office Recurring Deposit (RD) scheme remains one of the most reliable government-backed savings instruments for those seeking a disciplined investment route. With the current interest rate fixed at 6.7% per annum, the scheme offers a secure way to build a substantial financial nest egg over a long-term horizon.

Path to ₹25 lakhs

For investors looking to create a good fund, the 10-year investment window provides the maximum benefit of quarterly compounding. By committing to a monthly deposit of ₹15,000, an individual can accumulate a total maturity amount of ₹25,68,107.

Over the 120-month period, the total principal invested amounts to ₹18,00,000. The power of compounding adds a further ₹7,68,107 in interest alone, making it a lucrative option for salaried individuals and long-term savers. While the initial tenure for a Post Office RD is five years, the account can be extended for an additional five-year block to achieve these results.

Key benefits and flexibility

The Post Office RD is designed to be accessible to all segments of society. Investors can start with as little as ₹100 per month, with no upper limit on the maximum deposit amount. This allows for scalability based on an individual's increasing income.

Additional features that enhance the scheme's appeal:

• Loan facility: After 12 months of consistent deposits, account holders can withdraw up to 50% of their balance as a loan.
• Advance payments: To avoid the hassle of monthly tracking, users can pay up to five years of instalments in advance.
• Guaranteed returns: Unlike market-linked investments, the returns are fixed at the time of account opening, protecting the investor from market volatility.

For those preferring a shorter commitment, a five-year term with a ₹15,000 monthly deposit would result in a maturity value of approximately ₹10,71,545, consisting of the ₹9,00,000 principal and over ₹1.7 lakh in earned interest.