Post Office RD offers 6.7% interest:You can start investing with 100 rupees, know its special features

The government has not changed the interest rates for Small Saving Schemes for October-December (Q1FY27). This means you will continue to receive the same interest as before. In this situation, if you are planning to open a Recurring Deposit (RD), then Post Office RD could be right for you. It is currently offering 6.70% annual interest. By depositing 2 thousand rupees every month for 5 years, you can build a lump sum fund of 1 lakh 43 thousand rupees. Here we are telling you about Post Office RD. First understand what is RD? Post Office Recurring Deposit or RD can help you in big savings. You deposit a fixed amount every month after receiving your salary and after 5 years when it matures, you will have a large amount in hand. While saving money in a piggy bank at home may not earn you interest, depositing money here also earns you good interest. Investing 1,000 every month for 5 years will create a fund of 71,000 If you invest an amount of 1 thousand rupees per month in Post Office RD, then at an annual interest rate of 6.7%, after 5 years upon maturity it will become approximately 71 thousand rupees. You can take a loan against the money deposited in RD RD also offers a loan facility. This means if you need money in between, you can take a loan against it without breaking the RD. The interest rate on this loan is lower compared to personal loans. In the Post Office’s five-year RD, if you deposit 12 consecutive installments, you can avail the loan facility. This means to avail this facility, you need to deposit money continuously for at least one year. After one year, you can take a loan of up to 50% of the amount deposited in your account. If you take a loan against RD, the interest on the loan amount will be applicable as 2% + the interest rate applicable on the RD account. For example, currently RD is offering 6.7% interest, so if you take a loan against RD now, you will get the loan at an interest rate of 8.7% per annum. 5 benefits of RD Anyone can open an account Any person can open an RD account. This account can also be opened in the name of small children. If you are 10 years or older, you can operate it yourself. 3 people can also open a joint account together. You can open an account through any post office.