Post Office Saving Schemes: Earn more interest than banks, it will cost you just Rs 10

This is a 5-year Post Office Recurring Deposit Account (RD), where a person can begin with a minimum amount of Rs 10 per month or any amount in multiples of Rs 5. There is no maximum limit.

This account can be opened by cash / Cheque. It has nomination facility while opening and also after opening of account, which can be transferred from one post office to another. Image source: Reuters

Everybody wants to get maximum returns with minimum investment. However, in current era, when most people live their life on an average salary, they are not in a situation to make a solid plan for effective saving. However, you can earn handsomely with this plan. One Post office scheme can serve your purpose. Here are the details of this saving scheme.

This is a 5-year Post Office Recurring Deposit Account (RD), where a person can begin with a minimum amount of Rs 10 per month or any amount in multiples of Rs 5. There is no maximum limit.

You can earn an interest of 6.9% per annum (quarterly compounded). This scheme can be continued for another 5 years on year to year basis. Notably, the bank saving schemes generally provide an interest rate between 3.5 per cent to 6 per cent(maximum).

This account can be opened by cash / Cheque. It has nomination facility while opening and also after opening of account, which can be transferred from one post office to another.

One can open any number of accounts in any post office even in the name of minor of 10 years. Minor after attaining majority has to apply for conversion of the account in his/her name. Two adults can open their joint account also.

Notably, subsequent deposit can be made up to 15th day of next month if account is opened up to 15th of a calendar month, and up to last working day of next month if account is opened between 16th day and last working day of a calendar month.

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One withdrawal up to 50% of the balance allowed after one year. It may be repaid in one lumpsum along with interest at the prescribed rate at any time during the currency of the account.

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