24 Sep 2025 : If you too are looking for a savings scheme that is completely safe, comes with government backing, and offers good returns on regular investments — then the Post Office Recurring Deposit (RD) scheme can be the best option for you. The special thing is that you don’t need to invest a large lump sum; instead, you can build a big fund by investing small amounts every month.
Since this scheme is government-backed, not only is your money safe, but the 6.7% annual interest you earn is fixed and guaranteed, and it is revised every quarter. Let’s understand all the key details of the Post Office RD scheme and how you can take a step toward fulfilling your dream of creating wealth worth crores.
Key Features of the Post Office RD Scheme
- This scheme is open to any Indian citizen.
- You can open a single account or a joint account with up to three people.
- Parents/guardians can also open accounts in the name of their minor children.
- Children above 10 years of age can open their own accounts.
- You can start with as little as ₹100 per month, with no maximum investment limit.
- Currently, the scheme offers 6.7% annual interest.
- The maturity period is 5 years, extendable for another 5 years.
- After one year of regular investment, you can take a loan of up to 50% of your balance, making the scheme more flexible.
How to Create a ₹42 Lakh Fund in 10 Years?
If your monthly income is ₹1 lakh, you can easily deposit ₹25,000 into a Post Office RD every month. After continuously investing for 5 years, you can extend the account for another 5 years. By saving ₹25,000 per month for 10 years, you’ll accumulate a large fund.
Summary at a glance:
| Details | Amount (₹) |
|---|---|
| Monthly Investment | ₹25,000 |
| Total Investment Period | 10 years |
| Total Investment | ₹30,00,000 |
| Maturity Amount | ₹42,71,364 |
| Interest Earned | ₹12,71,364 |
So, in 10 years, by investing ₹30 lakh, you will earn an additional ₹12.71 lakh as interest.
Couples Can Also Invest Together
Another attractive feature of this scheme is that a husband and wife can invest together. If both contribute ₹12,500 each per month into a joint RD account, then too you’ll be able to build a fund of over ₹42 lakh in 10 years. This way, neither of you bears the full investment burden alone, and you can achieve your larger financial goals without compromise.
Summary:
Post Office Recurring Deposit allows couples to jointly invest, ensuring secure savings, attractive interest rates, and disciplined monthly deposits, helping build a substantial ₹42 lakh corpus in 10 years.