New Delhi : If you want to invest, but do not have much money for it or you cannot invest large sums of money at once, then this plan can be of use to you. In this, your money is safe and there will be no problem in paying its EMI.
You can invest in this post office scheme by depositing Rs 100 every month. You will get the benefit of this in lakhs in the subsequent few years. In addition, interest is also paid to you on this. Apart from this, if you want, you can also take a loan under this scheme.
This post office scheme is an RD process. Under this, a single individual, joint account (up to 3 people), a guardian on behalf of the minor, a minor above 10 years in his name can also open accounts under this scheme. Multiple accounts can be opened under this.
Under this scheme, every month you have to deposit Rs 100 under each account. If the account is opened on the 15th of the following month, the deposit will be made by the 15th day of the subsequent month. If the account is opened between the 16th day of a calendar month and the last working day, the credit will be made up to the last working day of the subsequent month. If the RD account is not closed, an advance can be credited to an account for up to 5 years.
One can avail loan facility up to 50% of the balance amount after depositing 12 installments and keeping the account active for 1 year. The loan can be repaid in lump sum or in equated monthly installments. The interest on the loan will be applicable as the rate of interest +2% applicable on the RD account. This interest will be calculated from the date of payment till the date of refund of deposit. If the loan is not repaid, the loan amount is deducted from the account. You have to approach the post office to get the loan.
Under this scheme, you have to deposit money for five years. But if you want, you can deposit money under this even further. The account can be extended for a further period of 5 years by applying to the concerned post office. The interest rate applicable during the extension will be the interest rate at which the account was originally opened. For full years, RD interest rate will be applicable and for tenures less than one year, PO Savings Account interest rate will be applicable.
By the way, if you invest Rs 5000 in post office RD every month for 5 years, then you get Rs 3.48 lakh on maturity. At present, 5.8 percent annual interest is being available on post office RD. The interest is compounded on quarterly basis.